Problems With Charity Crowdfunding Sites

There is growing concern that some of the “charity” crowdfunding sites are being used by unscrupulous posters who start campaigns for victims but fraudulently keep the funds.

Critics blame the web portals for not vetting the posters sufficiently, but the portals claim they do industry standard fraud checks.

Charity sites are now big business as the venture capitalists have taken notice as a Silicon Valley VC bought a majority stake in GoFundMe, valuing it at about $600 million.
http://www.wsj.com/articles/crowdfunding-sites-like-gofundme-and-youcaring-raise-moneyand-concerns-1456775949

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, unfair and deceptive practice, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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