Prospectus Supplement dated July 29, 2009
For distribution solely in the State of Connecticut
http://www.prosper.com/Downloads/Legal/Prospectus_Supplement_Connecticut_2009-07-29.pdf"On July 27, 2009, Prosper Marketplace, Inc. (“Prosper”) and the Banking Commissioner for the Department of Banking of the State of Connecticut executed a Consent Order to resolve matters relating to Prosper’s offers and sales of unregistered securities, and ... paid the State of Connecticut the sum of $12,602. The Consent Order was based on a ... template consent order finalized between Prosper and NASAA on April 21, 2009 ..."
Edit/add Connecticut's Department of Banking reports "Approximately 600 Connecticut residents purchased almost 25,000 notes and have financed Prosper loans totaling approximately $2.2 million during the period in question."
http://www.ct.gov/dob/cwp/view.asp?a=2246&q=444062Subsequently, Connecticut approved lending and note trading on the 'new' Prosper 10 days after this sanction was issued (approved 08/07/09).
Edit/Update Michigan has also sanctioned Prosper (effective 06/25/09). Michigan received $20,461 in consideration of 40,000** unregistered securities (Prosper loans) sold in their state. Total unregistered sales were $6,452,422. **Michigan said 40,496 lenders were affected (meaning the average Michigan lender had just $90 invested). It is more likely 40,496 Loans were involved.
PDF of order:
http://michigan.gov/documents/dleg/Prosper_Marketplace_Inc._-_Administrative_Consent_Order_285088_7.pdf (suggest this move to The Lobby with the rest of the NASAA announcements)