The Securities and Exchange Commission reported June 28 that it has obtained an emergency order in the U.S. District Court for the Northern District of California halting an alleged “Ponzi-like scheme” in which a California business and its principal raised $42 million by selling the securities of two mortgage investment funds they controlled (SEC v. Small Business Capital Corp.).
Los Angeles lawyer Nicolas Morgan, DLA Piper LLP, who represents defendants Mark Feathers, his company Small Business Capital Corp., and the two investments funds, could not be reached immediately for comment.
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