SEC fines Prosper Funding $3 million for overstating net returns to investors

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SEC fines Prosper Funding $3 million for overstating net returns to investors
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The Securities and Exchange Commission on Friday said Silicon Valley-based Prosp...

FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst/File Photo

WASHINGTON - The Securities and Exchange Commission on Friday said Silicon Valley-based Prosper Funding LLC will pay a $3 million penalty for miscalculating and materially overstating annualized net returns to retail and other investors. The regulator said the online lending platform from around July 2015 until May 2017 excluded certain non-performing charged off loans from its calculation of annualized net returns that it reported to investors. As a result, Prosper overstated annualized net returns to more than 30,000 investors, it said.

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