My reading of the offer letter:
Page 1
Hi, we're the SEC. And you're Prosper. And you are so f_____d right now. We, at present, own your ass.
Page 2
Ok, while we're investigating this mess, you're going to admit that we own your ass and that we sent you a nastygram telling you that you violated securities law, you admit that we are your overlords, and it is US who you will have to deal with to settle any question about what specific laws you might have broken.
Now, if you sign this letter, you just can't go in public on your cute little blog or on TV and deny that you did NOT violate any securities law or the SEC is screwing things up and we're just picking on you. If you sit in your office and post on the Internet and tell your customers that you deny everything and you don't even acknowledge that we even sent you a C&D... you will be punished.
After all, we are your overlords.
Oh yes, you will also promise not to claim double jeapordy if we make an agreeable settlement with you, then come back and bite your ass later.
Page 3
Here's a few laws we're going to ask you to also waive your rights of claims against the SEC for attorney's fees for any work done up until this point. So don't be foolish and send us any bills for that sorta noise.
Not only do you acknowledge that we are your overlords, you need to sign here at the bottom attesting to agreement to this offer, and also that we didn't threaten you in any way to sign this thing---it was totally your decision, man (as if you have any real say in these sorts of things).
Page 4
Some douche who was interrupted from eating his bagel has to swear on a peace of paper that Larsen was there when he signed page 3.
