UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~December~~ January 151, ~~2009~~2010

Performance Capital Management, LLC

(Exact name of registrant as specified in its charter)

	California		0 – 50235		03-0375751
	(State or other Jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

	7001 Village Drive, Suite 255
	Buena Park, California		90621
	(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (714) 736-3790

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 54.0201. ~~Departure~~Changes ofin ~~Directors~~Registrant’s orCertifying ~~Certain Officers, Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers~~Accountant.

~~Departure~~Performance Capital Management, LLC (the “Company”) was notified that, effective January 1, 2010, certain partners of ~~Chief~~Moore Stephens Wurth Frazer and Torbet, LLP ~~Information~~(“MSWFT”) ~~Officer~~and Frost, PLLC (“Frost”) formed Frazer Frost, LLP (“Frazer Frost”), a new partnership. Pursuant to the terms of a combination agreement by and among MSWFT, Frazer Frost and Frost (the “Combination Agreement”), each of MSWFT and Frost contributed all of their assets and certain of their liabilities to Frazer Frost, resulting in Frazer Frost assuming MSWFT’s engagement letter with the Company and becoming the Company’s new independent accounting firm. As of the date of this Current Report, Frazer Frost is not registered with the Public Company Accounting and Oversight Board (PCAOB), however such registration is in process.

OnThe audit ~~December~~reports ~~15,~~of ~~2009,~~MSWFT ~~Mr.~~on ~~Darren Bard informed~~ the ~~Board~~financial ofstatements ~~Directors~~ of ~~Performance~~ ~~Capital Management, LLC (~~the “Company”) ~~that he would resign from his position~~ as ~~Chief Information Officer~~ of ~~the Company,~~ and ~~its~~for ~~subsidiary,~~the ~~effective~~years ~~January~~ended 15December 31, ~~2010~~2008 toand ~~pursue~~December ~~other~~31, ~~career~~2007 ~~opportunities. Mr. Bard~~did ~~will~~not becontain ~~assisting~~an ~~the Company in transitioning matters prior to his~~adverse ~~departure. Mr.~~opinion ~~Bard~~or ~~has~~a nodisclaimer ~~disagreement~~of ~~with~~opinion, ~~the~~and ~~Company~~were onnot ~~any matter~~qualified ~~relating~~or tomodified ~~the~~as ~~Company's operations~~to uncertainty, ~~policies~~audit scope or ~~practices~~accounting principles.

~~The~~During the ~~Board~~Company’s most two recent fiscal years ended December 31, 2008 and 2007 and ~~does~~through January 1, 2010, the Company did not ~~plan~~consult towith ~~fill~~Frazer Frost on (i) the ~~position~~application ~~left~~of byaccounting ~~Mr.~~principles ~~Bard’s~~to ~~departure~~a ~~due~~specified totransaction, ~~the~~either ~~Company’s~~completed ~~depleting~~or ~~cash~~proposed, ~~reserves.~~or ~~This~~the ~~may~~type ~~have~~of aaudit ~~material~~opinion ~~impact~~that may be rendered on the Company’s ~~day-to-day~~financial ~~operations~~statements, and ~~internal~~Frazer ~~controls~~Frost ~~over~~did ~~financial~~not ~~reporting given~~provide ~~Mr.~~either ~~Bard’s~~a written ~~technical~~report ~~skills~~or ~~and~~oral ~~his~~advice ~~role~~to inthe ~~tracking~~Company ~~and~~that ~~reporting~~was onan ~~the~~important factor ~~performance~~considered ofby the Company’s ~~portfolios.~~in ~~Mr.~~reaching ~~Bard~~a ~~may~~decision as to any accounting, ~~however~~auditing, or ~~continue~~financial ~~to assist~~reporting issue; or (ii) the ~~Company~~subject of any disagreement, as defined anin ~~independent~~Item ~~contractor~~304 on(a)(1)(iv) anof asRegulation S-~~needed~~K ~~basis~~and ~~after~~the ~~his employment~~related ~~ends~~instructions, or ~~which~~a ~~will~~reportable ~~alleviate~~event within the ~~impact~~meaning toset ~~the~~forth ~~Company~~in asItem 304(a)(1)(v) ~~result~~ of ~~his~~Regulation ~~departure~~S-K.

In connection with ~~his~~the ~~departure~~audits of the Company’s financial statements for the fiscal year ended December 31, ~~Mr.~~2008 ~~Bard~~and ~~will~~2007 and through the date of this Current Report, there were: (i) no disagreements between the Company and MSWFT on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not ~~receive~~resolved ato ~~severance~~the satisfaction ~~payment~~of MSWFT, aswould have caused MSWFT to make reference to the subject ~~provided~~matter inof ~~his~~the ~~employment~~disagreement ~~agreement~~in ~~with~~their reports on the Company’s financial statements for such years, ~~but~~and ~~will~~(ii) beno ~~eligible~~reportable ~~for~~events within the meaning set ~~continuing~~forth ~~health~~in ~~insurance~~Item ~~coverage~~304(a)(1)(v) ~~under~~of ~~COBRA~~Regulation S-K.

The Company has provided MSWFT a copy of the disclosures in this Form 8-K and has requested that MSWFT furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not MSWFT agrees with the Company’s statements in this Item 4.01(a). A copy of the letter dated January 7, 2010, furnished by MSWFT in response to that request is filed as Exhibit 16.1 to this Form 8-K.

Item 8.01. Other Events.

Reduction in Force

In an effort to cut ongoing operating expenses, the Company terminated all but four of its full-time employees and three of its part-time employees effective January 1, 2010. Its two officers, David Caldwell and Darren Bard, were not terminated. However, Mr. Bard will be resigning effective January 15, 2010, as previously reported in a report on Form 8-K dated December 15, 2009 and filed with the SEC on December 21, 2009. The Company plans to outsource its collections operations until such time as its portfolios are sold. The Company did not incur any material charges as a result of the reduction in force.

Item 9.01. Financial Statements and Exhibits.

Exhibit No.

Description

16.1	Letter From Predecessor Independent Registered Public Accounting Firm

FORWARD-LOOKING STATEMENTS

Except for the historical information presented in this document, the matters discussed in this Form 8-K or otherwise incorporated by reference into this document contain “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements can be identified by the use of forward-looking terminology such as “believes,” “plans,” “expects,” “may,” “will,” “intends,” “should,” “plan,” “assume” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by Performance Capital Management, LLC. You should not place undue reliance on forward-looking statements. Forward-looking statements involve risks and uncertainties. The actual results that we achieve may differ materially from any forward-looking statements due to such risks and uncertainties. These forward-looking statements are based on current expectations, and we assume no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by us in this report on Form 8-K and in our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PERFORMANCE CAPITAL MANAGEMENT, LLC
December 18, 2009		By:	/s/ David J. Caldwell
January 7, 2010		By:	/s/ David J. Caldwell
(Date)		~~David J. Caldwell~~	David J. Caldwell
		~~Its: Chief Operations Officer~~	Its: Chief Operations Officer

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