Doubts Arise About Reg. Crowd Funding

Is there trouble on the horizon for Regulation Crowd Funding companies?

According to the New York Times, almost none of the companies crowdfunding under the JOBS Act are in full compliance with the law and 40% don’t have audited or certified financial statements.

While some regulated web portals take only those that have been checked to be in compliance, other sites are taking any and all comers, subjecting their investors to significant additional risk.

Although there haven’t been many horror stories to date, the bad apples, like Ascenergy, do show up from time to time.

Caveat emptor.


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:
This entry was posted in accredited investor, Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, FINRA, fraud, Funding Portals, Investments, review, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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