The State of Connecticut Department of Banking has sanctioned Prosper Marketplace (Prosper.com) for the sale of unregistered securities (approx. 25,000 notes) to 600 resident of Conecticut in the total amount of $2.2 million.  Additionally, the State of Connecticut found that Prosper failed to make required disclosures and financial statements available to investors.

You can read the Consent Order here.

Additional discussion is also taking place within the Prosper Community at Prospers.org.