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Fraud Friday Exclusive Mugshot — USA vs Mark Feathers — His SBA Fraud Timeline

May 19, 2017

By Bob Coleman
Editor, Fraud Friday

Fraud Friday Exclusive Mugshot — USA vs Mark Feathers — His SBA Fraud Timeline

 

Mark Feathers
April 24, 2017
Glenn E. Dyer Detention Center, Oakland
Mugshot obtained under the California Public Records Act

The Historical Timeline of USA vs Mark Feathers

The Historical Timeline of USA vs Mark Feathers

June 2012 — The SEC seizes control of Mark Feathers’ Northern California-based Small Business Capital saying he is running a “ponzi-like” scheme to fund his SBA 7(a) lending company. The nonbank lender holds a national small business lending company license — one of 14 issued by the SBA that allows the holder to be able to make SBA 7(a) loans anywhere in the country. A receiver is appointed by the Feds.

July 2012 — The receiver padlocks the doors of Small Business Capital — and fires Mark Feathers and the the rest of his staff, except for a few who are retained to wind down the company. Liquidation of assets begins.

August 2013 — A Federal Court Judge issues a summary judgement in favor of the SEC.

“Essentially, the SEC has shown that Feathers was not using fund profits to pay out returns, but rather other member investments – contrary to the representations of the Funds’ offering documents – as ‘Ponzi-like payments.’ Feathers had instructed his employees to maintain monthly payments to investors at a return of 7.5 percent per annum and 9-10 percent per annum, respectively, without taking into consideration the funds’ net income or actual profitability.”

November 2013 — The judge issues a ruling that Feathers is personally liable to repay $7.8 million of “ill-gotten” gains,” banned from selling securities and fined $10,000.

November 2014 — Feathers is indicted by a grand jury on 29 counts of fraud — 17 counts of securities fraud and 12 counts of mail fraud.

November 2014 — Feathers is immediately released after booking on a $250,000 unsecured personal recognizance bond.

April 2015 — The Receiver sells Small Business Capital’s non-bank license to Business US for $700,000. The accompanying loan portfolio balance of $5 million sells for 93 cents on the dollar. The sale falls through.

February 2016 — The Receiver then sells Small Business Capital’s non-bank license to BYL Small Business Finance for $1.2 million. BYL buys the $5 million loan portfolio — 90 cents on the dollar for 7(a) loans, $1.10 on the dollar for 504 loans and 60 cents on the dollar for non-SBA loans.

2013-2017 — Mark Feathers begins calling himself “The Honey Badger” as he rants and raves about the injustices the SEC, SBA and US Government have waged upon him. He initiates hundreds and hundreds of pro se lawsuits, motions, appeals, criminal and ethics complaints against the SEC, SEC CPA and attorneys, the Receiver and his attorney and SBA.

March 7, 2017 — Mark Feathers sends his now infamous 5:32 a.m. witness intimidation email to the “elite eight,” “I am putting you on notice now that if the word Ponzi is used at trial, or the word swindler, or similar, I will rise out of my seat and attempt to bring injury to any party that uses the word.”

March 23, 2017 — Mark Feathers bail is revoked and he is ordered to report to county jail the next day.

March 24, 2017 — Mark Feathers reports to Santa Clara County Jail.

April 2017 — The Receiver concludes liquidation of Small Business Capital, with investors recovering 85.9% of their investments.

April 24, 2017 — Mark Feathers transfers to Glenn E. Dyer Detention Facility in Oakland.

January 2018 — Mark Feather’s criminal trial is scheduled to begin in San Jose on 29 counts of securities and mail fraud.

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