July 1, 2013
One year after seizure by the SEC, the SEC receiver has calculated the losses to investor to exceed $13 million in the “Ponzi-like scheme,” perpetrated by SBA non bank lender Small Business Capital.
The most damning stat is SBC earned $4 million in profits, but paid out $6.5 million in investor returns.
The SEC receiver also details how SBC and its affiliated funds transferred $7.5 million to cover SBA’s operating expenses.
The receiver also detailed over $2 million paid to Mark Feathers, the fund’s manager and his immediate family.
“Mr. Feathers received money from the Funds and from the Manager. Mr. Feathers also received payments directly from escrow accounts for loans made by the Funds. Mr. Feathers and his wife, Natalie Feathers, were employed by the Receivership Entities and a significant amount of the money they received was for their salaries. However, personal expenses including household expenses, purchases of automobiles and car payments, travel & entertainment, and other expenses of a personal nature were paid by the Receivership Entities. Mr. Feathers’ minor children also received money from the Receivership Entities. Payments to or on behalf of Mr. Feathers and his immediate family members are summarized as follows: