February 12, 2016
By Bob Coleman
Editor, Fraud Friday
Fraud Friday — BYL Small Business Finance to Purchase SEC Seized SBLC License
Small Business Capital’s license seized by the SEC and feds several years ago is scheduled to be sold.
The price? $1.2 million. Attached to the license is the loan portfolio which fetched 90% of the principal value — approximately $5 million.
The license allows a non-bank entity to fund SBA 7(a) loans. There are only 14 in existence.
The license was formally controlled by Mark Feathers who is facing a 29 count criminal indictment for running an alleged ponzi scheme to fund his lending operations. Previously, a federal court has ruled him personally liable to repay $7.8 million.
The court must approve the sale and transfer of the license. SBA has signed off on the transaction.
Feathers recently filed suit against the SEC and continues to vigorously proclaim his innocence.