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Author Topic: The SEC reads Fred93  (Read 10205 times)

Investar

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The SEC reads Fred93
« on: September 10, 2009, 06:47:48 am »
A June 12, 2009 letter from the United States Securities and Exchange Commission to Ed Giedgowd (Prosper's Chief Compliance Officer at the time) has been scanned to the SEC's public file for Prosper.

Ref: "filename1.pdf" @ http://www.sec.gov/Archives/edgar/data/1416265/000000000009049230/0000000000-09-049230-index.htm

It provides in interesting window into behind-the-scenes interrogatories that took place prior to SEC's approval of the new Prosper securitized lending platform. Among other things the SEC writes, "...we note analysis of the prosper loan originations posted by prosper members which shows loans that are not paying according to their terms approaching 40% for your oldest tranches. We also note that ..."

"In postings on the web regarding performance of Prosper loans by one of your lender members, there have been concerns expressed about the number of reported loans that closed during a paricular months changing. Please provide the staff, with a view towards improved disclosure,. your originated loans for every month that you operated prior to shutting down your site, the number that went 30, 60 and 90 days past due and the number that entered collection. Also, please address any instance where the number of reported loans in a paricular monthly set changed from when they were originated to the currently reported amount. Please refer to http://fred93blog.blogspot.com."
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xraider

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Re: The SEC reads Fred93
« Reply #1 on: September 10, 2009, 06:50:57 am »
That is so excellent.  It must have upset a stomach or two at Prosper being referred to Fred's blog.  I would love to see their response!

Nice work, Fred!!
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112233

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Re: The SEC reads Fred93
« Reply #2 on: September 10, 2009, 06:54:55 am »
awesome

I wonder if the SEC visited here
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112233

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Re: The SEC reads Fred93
« Reply #3 on: September 10, 2009, 06:57:06 am »
Quote from: xraider on September 10, 2009, 06:50:57 am
That is so excellent.  It must have upset a stomach or two at Prosper being referred to Fred's blog.  I would love to see their response!

Nice work, Fred!!
I imagine they probably had to replace some furniture
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bamalucky

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Re: The SEC reads Fred93
« Reply #4 on: September 10, 2009, 08:29:07 am »
Can we move this to the lobby
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bankomatic

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Re: The SEC reads Fred93
« Reply #5 on: September 10, 2009, 08:41:53 am »
Yeaaaa, go fred!
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Chamatrain

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Re: The SEC reads Fred93
« Reply #6 on: September 10, 2009, 08:49:38 am »
If I were a named plaintiff in a legal action with Prosper, I'd make sure my attorney was aware of that information.

Superb contribution, Fred!
« Last Edit: September 10, 2009, 08:52:59 am by Chamatrain »
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Cushie

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Re: The SEC reads Fred93
« Reply #7 on: September 10, 2009, 08:51:04 am »
WOW!  Fred, you're owed a debt of gratitude.  How completely awesome!
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112233

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Re: The SEC reads Fred93
« Reply #8 on: September 10, 2009, 08:53:58 am »
Im kind of surprised the SEC uses blogs at face value. I mean, we all know fred and there is no concern, but the SEC doesnt necessarily know that.
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Beerbud1

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Re: The SEC reads Fred93
« Reply #9 on: September 10, 2009, 09:02:55 am »
Quote from: Chamatrain on September 10, 2009, 08:49:38 am
If I were a named plaintiff in a legal action with Prosper, I'd make sure my attorney was aware of that information.

Superb contribution, Fred!
Everything gets covered in "discovery". On a side note My attorney reads here.
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Xenon481

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Re: The SEC reads Fred93
« Reply #10 on: September 10, 2009, 09:05:05 am »
This is amazing.
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112233

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Re: The SEC reads Fred93
« Reply #11 on: September 10, 2009, 09:08:55 am »
Quote from: Beerbud1 on September 10, 2009, 09:02:55 am
Quote from: Chamatrain on September 10, 2009, 08:49:38 am
If I were a named plaintiff in a legal action with Prosper, I'd make sure my attorney was aware of that information.

Superb contribution, Fred!
Everything gets covered in "discovery". On a side note My attorney reads here.
not surprising since we discovered him through org
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Urbi_et_Orbi

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Re: The SEC reads Fred93
« Reply #12 on: September 10, 2009, 09:26:10 am »
I find this letter particularly sweet considering the arrogant and disdainful manner in which Fred93 has been treated by Prosper's management.  It has become relatively well known over the years how senior management at Prosper considered Fred93 little more than a troublemaker.  This is, of course, quite consistent with how you would expect Prosper to treat one of its largest lenders.

I also note that this letter is dated within just a couple of weeks prior to Giedgowd's departure.

LOL at "no factual defense."

Congrats, Fred!
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Risk_Reward

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Re: The SEC reads Fred93
« Reply #13 on: September 10, 2009, 09:37:54 am »
"Justify how your low range estimate (i.e. $0) is appropriate considering suits have
been brought and you have no factual defense (specifically regarding the Section 5
violation)."
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Risk_Reward

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Re: The SEC reads Fred93
« Reply #14 on: September 10, 2009, 09:39:00 am »
"In addition to our comment above, as it relates to the Section 5 violation and class action
suit, please address the following:
· Tell us if the class has been certified and quantify the amounts of the notes that are
related to the suit;
· Provide us your assessment of the clais and whether or not you believe the claims
may be limited by the statute of lIItations (quantify amounts in your response if
possible);
· Tell us ifhave you obtaed any fuer discovery concerng the probabilty that a
loss contingency has occured; and
. Provide us with your most recent legal representation letter."


Edit: for some reason the copy and paste butchered the language a little.
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