Prosper re-launch – hey, aren’t you still technically in a “quiet period” and under a SEC order to “cease and desist?”
April 28, 2009
UPDATED: PROSPER SHUT DOWN. (May 9, 2009)
As predicted by the Prosper-Watchers at Prospers.org, Prosper “flipped the bird” at the SEC this morning as they re-launched their site, but only available to California-based lenders.
Prosper was under a “cease & desist” order from the SEC for selling unregistered securities and a self-imposed “quiet period.”
Prosper.com Class Action Suit Monitor 
I’m still shoveling money OUT of the system. Prosper has made the final mistake on it’s ‘National Lampoons’ adventure. The SEC will likely step in within a couple of weeks and smash what is left of Prosper to bits or the court hearing next week will have a crushing impact. Either way, Prosper is done and I would recommend steering clear of the ensuing carnage ahead.
It’s odd to see them start back up right as the class action trial begins. The least I want to see out of the trial is a way to get at least something from loans that are now over a year past due, something that hasn’t happened since they stopped selling those off to bad debt buyers for pennies on the dollar.
Just a quick note to clarify that we have not yet reached the stage of class action trial. Next week is expected to bring us one of the early hearings on the path to the suit seeking class action status.
Push lawyers, PUSH! Get this thing shut down before more people (lemmings) join!