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[Mtnchick]

In my non-lawyer reading, it LOOKS like they are only slapping them for FUTURE transactions. I assume it will be up to individual lenders to go after them to recoup losses for their previous actions.

[zcommodore]

Rlaplanche      02:54:25 PM     Viewing the topic Prosper order to cease and desist by SEC.

[Fred93]

Fred93 has updated his blog with a short note to let folks know about the SEC order.
http://fred93blog.blogspot.com/2008/11/prospercom-sec-cease-desist-order.html

[ira01]

I haven't checked (and don't have time to now), but I wonder if the settlement agreement is also posted on the SEC site.  I want to know what the "sanctions" are.

It reads as if the offer is this

Accordingly, it is hereby ORDERED that: Pursuant to Section 8A of the Securities Act, Respondent Prosper cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act.

Based on the above, the Order orders Prosper to cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act of 1933. Prosper consented to the issuance of the Order without admitting or denying any of the findings in the Order. (Rel. 33-8984; File No. 3-13296)

http://www.sec.gov/news/digest/2008/dig112408.htm

Sheesh, that's not a "sanction."  A sanction is a punishment.  Agreeing not to commit further crimes is not a punishment.

[beerbud1]

http://www.backgroundnow.com/blog/background-check/prosper-marketplace-inc/

[Staneslav]

a

[big-al]

OK - whoever hacked the SEC web server to post that false document can fess up now.

 

[Urbi_et_Orbi]

It's getting interesting.

[futuretrump]

Given the hisotry to date regarding incompetence of Prosper employees, mainly Shira and the super hottie Goldie (hubba hubba), I can only surmise it likely that they are indeed unaware of the cease and desist order.

I would bet my Prosper portfolio  that it was calls from .org members who first informed them of its existence.

--futuretrump

Are your undies still in a bunch Nora?   

[NewHorizon]

Cameron seems to me to be a nice guy 'n all.
But it's been my experience that his track record for "getting back" could stand improvement.

[Fred93]

I can only surmise it likely that they are indeed unaware of the cease and desist order. ... I would bet my Prosper portfolio  that it was calls from .org members who first informed them of its existence.

    Yeah, that would be consistent.

[Urbi_et_Orbi]

5
(iv) there is no alternate regulatory scheme that reduces the risks to investors presented by the platform. As a result of the conduct described above, Prosper violated Section 5(a) of the Securities Act, which states that unless a registration statement is in effect as to a security, it shall be unlawful for any person, directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; or to carry or cause to be carried through the mails or in interstate commerce, by any means or instruments of transportation, any such security for the purpose of sale or for delivery after sale. Also as a result of the conduct described above, Prosper violated Section 5(c) of the Securities Act, which states that it shall be unlawful for any person, directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed as to such security. IV. In view of the foregoing, the Commission deems it appropriate to impose the sanctions agreed to in Respondent Prosper’s Offer. Accordingly, it is hereby ORDERED that: Pursuant to Section 8A of the Securities Act, Respondent Prosper cease and desist from committing or causing any violations and any future violations of Sections 5(a) and (c) of the Securities Act. By the Commission. Florence E. Harmon Acting Secretary

 

[beerbud1]

How long does it take the US mail to get from Washington, DC to San Francisco?

[cowdog]

Hold on, there is an easier explanation for Prosper not knowing about this.

The document on the SEC site is a pdf...  http://www.sec.gov/litigation/admin/2008/33-8984.pdf

 

[Urbi_et_Orbi]

This old thread comes to mind, including some discussion on page 2 about who actually regulates Prosper.

Looking back, some signs of things to come...from 2006.