Forbes Business Network

SharedProfit Inc. and Wellspring Capitol Group
versus
The Security and Exchange Commission

    SharedProfit Inc. was linked to the misfortune of Wellspring Capitol Group because they were their main source of income. This association had always been rewarding and profitable until the SEC decided that Wellspring was operating an illegal Ponzi type scheme and selling unregistered securities. Both these allegations are without foundation but because of their own rules they have the power to seize all the assets of Wellspring and it's employees and close down their business. Even though, not directly charged, SharedProfit has also been shutdown by this action of the SEC because most of their assets are caught up (along with at least twenty thousand others) in this seizure.

    As an American, I have been truly changed by this experience because I can now see that our constitution has been circumvented by the very government agencies that have been formed to protect our rights. Sadly the courts have gone along for the ride because agencies like the SEC have been able to act this way in the past and therefor have legal precedence, even though their actions violate several of our constitutionally guaranteed rights and the oath they took to protect our constitution.

    The SEC's action began between September 5 and September 9, 2003, when the SEC and the FBI conducted raids, seized property from, and obtained a Temporary Restraining Order from the U.S. District Court against Wellspring Capital Group of Gales Ferry CT. This was done based on only hearsay, from what we have been able to ascertain; not one actual complaint from any of the company's customers has yet been found. The TRO froze all accounts associated with Wellspring Capital and its owner, Mr. Blake Prater.

    Therefore Mr. Prater was unable to honor his agreements with us and due to all funds being frozen, all our income stopped without warning. Once data bases, records, and computers were seized and personal as well as company accounts were frozen it became next to impossible for Mr. Prater to comply with outstanding agreements or checks. One's entire life starts to bounce. Not only for Mr. Prater but for all his customers as checks that had been issued are now bouncing placing us all in financial jeopardy.

    With a search warrant in hand the SEC attack was scheduled on a Friday. The reason the attack happened on Friday is because all the Government has at that point is a right to take any and all items they deem to be potential evidence. They wanted to prevent the possibility of the company hiring a capable attorney who would rapidly contact a Judge who would stop or regulate the handling of the evidence and thereby foil the Government's plot.

    Next they scheduled a hearing before the court requesting that the Temporary Restraining Order, be converted to a Preliminary Injunction Order. This action enables the SEC to use the Court to perpetrate their plot to keep the company out of business for an extended period. The accused company did receive an opportunity this time to come forward and defend themselves, however they are forced to prove that they are not illegal, which is quite a task due to the fact they have no money to hire an attorney nor records of their legitimate business transactions, due to the fact that they were seized and the monies have been frozen.

    Mr. Prater did appear at the hearing Pro Se. At this hearing the Judge asked SEC if they had any complaints against the company, they had none. The Judge asked if they had any evidence against the company, again they had none. However they persist in their efforts to put Mr. Prater out of business. By doing so they are causing great harm to thousand of U.S. citizens, our families, and those of the international countries.

    We have no doubt that the SEC did not expect Mr. Prater's customers to ban together, support each other, the company, Mr. Prater, and to hire attorneys to represent us, and we will not go away. This unbridled, abusive use of power must be stopped.

    We are now asking that you, contact your congressional representative and implore them to initiate a congressional investigation into this extremely serious state of despotism. Please, "WE THE PEOPLE" must call these agencies into accountability immediately.

    I would also now ask that this matter simply not be turned back to the SEC for them to investigate as I am sure they have already received this. As one of us has replied to this type of response, "That is like reporting child abuse and having the accused parent investigate."