Stupid Crowdfunding Trick

Stupidest crowdfunding idea ever:

A microbrewery in Ohio is asking “investors” (really gamblers) to plunk down $47.50 per share, vote for either black or red, and say how many shares they want to gamble. After the closing, the votes will be counted and the officers will go to a casino, live on TV, and bet the money on the winning color on one spin at a roulette table . It it wins, your shares double, if it loses, so do you.  Note that the odds of winning are about 47%.

This is a Reg. A offering, so the SEC may get involved.
http://www.brewbound.com/news/brewdog-plans-gamble-crowdfunded-investments-roulette-table

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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, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Investments, Jobs, Legislative Intent, SEC, Small Business, Tax, VC, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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