July 13, 2012

Wife, Children on SB Capital Payroll. SEC to Liquidate. First Mention of FBI Involvement

After a whirlwind two weeks we now know SB Capital's fate. It will be shuttered by the SEC and liquidated.

Former President, Mark Feathers, signed the paperwork July 10th for a receiver to take control -- without legal counsel representation.

In an email to the Coleman Report he wrote, "Under the threat by SEC of non-stop depositions to myself and family members up through July 10th (the court date to review a "temporary" vs. "permanent" injunction), as well as indirectly communicated messages of FBI involvement if I was not cooperative, I was placed in an untenable position of signing the permanent injunction for a receivership of my company and funds, which is not what I had wished for, as it was clearly not in the best interests of my company and my funds investors, which I hope to demonstrate through the facts of the lawsuit."

We close with this paragraph that Feathers send to his investor base regarding allegations of excessive compensation by the SEC.

"You may shortly see some misleading information from SEC or the receiver about a "$100,000 cashiers check". When informed that our fund accounts had been put into receivership, I did indeed process by phone a request for a check from my BUSINESS account. I had no idea that my personal and business accounts were also frozen. As the SEC and the receiver have positioned this, though, it makes it look like it was a "grab". This was not the case. Most of my net worth is tied up in the business, and it was necessary for me try to obtain enough liquidity for what I thought would be my family's living needs for some period. I hope that you understand. Additionally, my twins were in fact on payroll (at low amounts of income) of SB Capital, like many family owned small businesses. My wife left her banking job paying $250,000 eighteen months ago, because we were so busy. Her new pay, for the record, was just slightly above 1/3 what she was receiving at banks. It was necessary to engage some level of child case, at affordable amounts to SB Capital, s well, for her to be able to provide the high level services that her experience brought to the business."