Wellspring Capital Group, Inc. and Blake A. Prater

On September 8, 2003, the SEC obtained a temporary restraining order, asset freeze, and other relief against Blake Prater and his company, Wellspring Capital Group.  The SEC alleged the defendants operated a sophisticated Internet Ponzi scheme raising at least $3 million from thousands of investors.  The SEC alleged the defendants fraudulently guaranteed exorbitant returns as high as 1,000 percent per year.  For more information about the SEC's action, you can read Litigation Release Nos. 18336 (Sept. 10, 2003) and 18562 (Jan. 30, 2004).

The Court also appointed Lewis K. Wise as Receiver to collect, liquidate, and distribute assets to defrauded investors.  Mr. Wise has begun the process of liquidating assets.  At this time, the Receiver does not know how much money will be available or when a distribution may be made.

If you have questions or want additional information, you can contact the Receiver's paralegal, Pam Spielman, at pspielman@roginlaw.com.

http://www.sec.gov/divisions/enforce/claims/wellspring.htm