Thomas Seaman, As Receiver


CASE NO. 5:12-CV-03237-EJD





Changes to a creditor’s mailing address for purposes of receiving distributions can only be made by emailing your new mailing address and contact information to the Receiver by clicking here.  The Receiver will then update the official list of creditor contact information.  Official creditor information is not stored on this website or edited by changing your email address.

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to get to the search page.  Follow the instructions on the search page to log onto PACER and search for the case records.  Search by case number:  5:12-CV-03237 or by case name or by the name of one of the parties to the case, such as, “Small Business Capital Corp”.


Thomas Seaman, Receiver for
Small Business Capital Corp, et al
1 Park Plaza, Ste. 580
Irvine, CA  92614

Email the Receiver


Website Of
Thomas Seaman, CFA
Judicial Receiver
Thomas Seaman Company
1 Park Plaza, Suite 580
Irvine, California 92614


What is a Receiver?

A receiver is an individual appointed by a court, in this case the United States District Court for the Northern District of California, San Jose Division, to serve as a neutral party to assume control over businesses and assets that are the subject of litigation.  As noted below, the Receiver reports solely to the District Court.  In this case, the Securities and Exchange Commission ("SEC") has filed a complaint alleging that SB Capital, Investors Prime Fund, SBC Portfolio Fund, and Mark Feathers violated federal securities laws.  The Receiver was appointed pursuant to the June 26, 2012, Temporary Restraining Order (“TRO”), and the July 10, 2012, Preliminary Injunction ("PI"), both which can be found in the Case Documents section of this website. 

Who does the Receiver work for?

The Receiver is a neutral and independent party.  The Receiver reports directly to the District Court.  The Receiver does not work for the SEC or any other party.  The Receiver's duties include (a) investigating the business, operations and assets of SB Capital, Investors Prime Fund, SBC Portfolio Fund, and their subsidiaries and affiliates ("Receivership Entities"), (b) preserving and protecting the assets of the Receivership Entities, and (c) providing reports and recommendations to the Court.

Why was the Receiver Appointed?

In this case, the SEC is the plaintiff, and Small Business Capital Corp., Mark Feathers, Investors Prime Fund, LLC, and SBC Portfolio Fund, LLC are defendants.  The SEC has alleged that the defendants have engaged in acts, practices and courses of business that violate federal securities laws.  The SEC’s complaint (which is also available on this website) alleges that the defendants have made material misrepresentations regarding the Funds’ lending and other activities.  No final determination has been made with respect to the allegations.  Based on these allegations, the Receiver was put in place by the Court to preserve the existing assets while the litigation is pending.  As Receiver, Mr. Seaman has been put in control of the businesses and all of their assets.  The TRO and PI call for the Receiver to marshal assets and perform all acts necessary or advisable to preserve their value.

Is Small Business Capital still in business?

The TRO and PI authorize the Receiver to operate the businesses as he deems necessary and appropriate.  However, at this point, no new investments are being accepted and no new loans are being funded.  A small group of key employees have been retained to service the existing loan portfolio, maintain the books and records, and assist in selling and/or pooling recently funded loans.  The remaining employees have been terminated.

What is the status of SBC Senior Commercial Mortgage Fund?

SBC Senior Commercial Mortgage Fund is a newer fund established by SB Capital.  Although it is not named as a defendant, it is included as one of the Receivership Entities because it is an affiliate, and the TRO and PI both include subsidiaries and affiliates as Receivership Entities.

What will happen to my investment?

The Receiver is in the process of investigating and evaluating the assets and liabilities of the Funds.  The Receiver has seized approximately $10 million in cash, and there appear to be valid, secured and guaranteed small business loans held by the Funds.  At this time, however, the Receiver has not determined the value of the assets in the Funds relative to the amounts invested in them.  It is too soon to know how much investors will recover.  The Receiver will make a recommendation to the Court related to distributions once he has completed the tasks outlined in the TRO and PI.

When will I receive payments?

The Court has not authorized the Receiver to make distributions to investors or anyone else.  Until such time as the Court authorizes distributions to be made, no payments will be made to investors.  The Receiver's investigation takes time.  Additionally, before any distributions will be made, the Court must determine the proper amount of investor claims and approve a plan for distributing receivership assets.  The Receiver respectfully requests that investors be patient.  The Receiver will complete his work as quickly as possible.

Can I attend the hearings?

You are not required to attend, but all hearings are open to the public.  The dates and times for the hearings will be included in the documents filed with the Court and posted on the website.  The courthouse is located at:  Robert F. Peckham Federal Building, 280 South 1st Street, San Jose, CA 95113 

Can I write off my loss, if any?

The Receiver cannot give tax or other legal advice.  You should consult with your accountant or tax advisor.

Should I file a lawsuit against SB Capital?

As part of the TRO and PI, the Court entered a stay prohibiting litigation against the Receivership Entities.  The stay allows the Receiver and the Court to focus on completing their work such that all investors are treated evenly and fairly, and distributions can be made as soon as possible.

How do I contact the Receiver?
If you have questions or concerns, you should write the Receiver at the following address: 1 Park Plaza, Suite 580, Irvine, CA 92614.  You may also communicate via email through this website. The Receiver's telephone number for this matter is 949-222-0305.  This website will also be updated regularly to reflect significant receivership events.  The best way to stay informed is to periodically check the website.