By Bob Coleman
Editor, Fraud Friday
The Receiver of Small Business Capital, the non-bank lender seized by the SEC almost three years ago, has entered into an agreement to sell the license and assets to Business US.
Stephanie Bitters is the Managing Director of the SBA loan program for Business US. Norris Lozano is the CEO.
The SBA non-bank license sells for $700,000. It is one of only 14 in existence.
The accompanying $5 million SBA 7(a) portfolio fetched 93% on the dollar.
The transaction must be approved the judge.
And the former owner of the license has promised litigation against SBA for the transfer.
Writes Mark Feathers to SBA and the Coleman Report in an email received Wednesday, ‘Gentlemen I invite you to read the attached. I have maintained that the receiver in SEC v. Small Business Capital Corp. is a crook, and a fraud, and was hired through SEC misconduct entirely to promote their own self-serving cause(s). The receiver’s attorneys are crooks and frauds, as well.
‘When you read the attached federal court filing, you should also be left with no doubt as to a conspiracy behind the appointment of the receiver in my lawsuit. Part of the attached filing also includes a recent filing with the California Supreme Court against Thomas Seaman’s attorneys.
‘I will continue to fight with tooth and nail every effort of SBA to approve the sale of the SBLC license rightfully held by my investors.
‘If this license is sold, let there be no doubt that I will be driving Federal Tort Claim actions against SBA.’
Mark Feathers was arrested last November on 29 counts of fraud. The SEC alleges he ran a ponzi-like scheme to fund Small Business Capital.