An organization named The North American Securities Administrators Association (NASAA) has announced a $1 Million “settlement” with Prosper for their illegal sale of unregistered securities.
The full implications of this settlement are still unclear. It is unfortunate that the states are allowed to fine Prosper for the failure of NASAA’s own members to stop Prosper much earlier in the game. It is also unfortunate that this fine is being paid to the state regulators – and NOT the actual victims of Prosper’s illegal behavior.
This information was first reported here.
A press release appeared on the NASAA web site a bit later.