SoMoLend investor: 'The state of Ohio put us out of business'

Candace Klein hearing enters day two

Two SoMoLend investors testified on behalf of Candace Klein Tuesday morning during the second day of the embattled entrepreneur's state hearing.
   Cheryl and Carlin Stamm, who are married, testified that they made two separate investments in SoMoLend as accredited investors because they believed so strongly in the mission of the company.
   Each also testified that they knew there was a high risk that they would lose their money because of the risks associated with any new startup.
   SoMoLend, which stands for social, mobile, local lending, was designed to help small businesses borrow money in small amounts as one of the nation's first debt-based crowdfunding platforms.
   But the company and Klein ran afoul of Ohio state regulators last year.
   The hearing represents Klein's opportunity to defend herself against the Ohio Division of Securities allegations against her and SoMoLend.
   Insiders can read Cheryl Stamm's charge that "the state of Ohio put us out of business" and other highlights of the morning's testimony at WCPO, the only media outlet in attendance Tuesday.


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