"Severely and Grossly" Inaccurate is SEC, Mark Feathers Tells Coleman Report
July 2, 2012
After running our coverage of the SB Capital and Mark Feathers saga, we received this email from Mr. Feathers himself:
"The recent press release issued by the SEC in regards to SB Capital and our managed funds (Investors Prime Fund, LLC/SBC Portfolio Fund, LLC) are severely/grossly inaccurate, and contain many fallacies about myself, SB Capital, and the funds under our management. The agency has imposed severe actions without any notification to SB Capital or myself, including freezing my personal bank accounts as well as all business accounts and fund accounts. Despite anything that you may have read, I can assure you of the following:
"-Small Business Capital, LLC and our funds are liquid and profitable. For the SEC to posit 'ponzi-like' reference of investors being paid from 'new capital,' as opposed to receiving distributions from 'earnings' is both grossly insulting and we look forward to demonstrating, factually inaccurate.
"-Small Business Capital LLC this past week received a line of credit facility prequalification and term sheet for $30 million from one of the country's largest national banks. This would not have occurred without a substantial amount of diligence on the fund.
"-We have followed every guideline that we are aware of with the State of California in the sale of securities and the operations of the fund. To imply that we were not licensed to sell securities runs counter to the guidance and requirements that we have had in this matter from our securities attorney and the State of California.
"-The statement I "disguised" manager payments of any kind is absolutely ludicrous. I have spent my career in financial services, banking and in public service (U.S. Naval Officer and with the SBA). To leave safe banking jobs for the opportunity to "steal money" and out of greed is the most preposterous notion that I have ever seen or been accused of. Those who know me know that this is not something I would do.
"I have sacrificed huge amounts of time, energy, and my family's own capital resources into building our investment funds. I am working closely with the court appointed receiver, and I look forward to clearing myself of these accusations."
Stay with the Coleman Report for the latest news on this development.