To be honest I am quite angry at this. By investing the funds with BS&T yo were essentially defrauding your lenders. I would have preferred investing it with Pirate for 7% instead of the 1.9% I got now (at the same risk!) for my locked in period of 8 weeks which would expire in 1.5 week (in fact I could have better invested in your PSTs). I invested with you to spread my risk which I appearently havent done thus far.
Unfortunately, this is going to look like another "I told you so", but:
1) Many people pointed out that diversification wouldn't work because even lenders who had no direct BS&T holdings themselves may well have lent money to people who put it in BS&T and thus the loans would go bad if BS&T collapsed.
2) Many people pointed out that the business model was basically "Lend me $50,000. I'll go to Vegas, and if I win, we'll split the profits."
Yes, you were defrauded. But only because you closed your eyes, stuck your fingers in your ears, and shouted "LALALALALALALALA!".
(Not that this at all excuses the people who defrauded you, of course. If you walk through a bad neighborhood at night with $100 bills sticking out of your pockets and get robbed, you're an idiot for doing that. But a robber who robs people who do stupid things is no better than any other kind of robber.)