Tag Archives: false

Be Careful What You Say On Social Media

Go to jail for tweeting? Yes, if you pose as a well known short selling activist and post Tweets that are untruthful. Currently on the lam, James Alan Craig, last of Scotland, was indicted for securities fraud for just that. … Continue reading

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Who Is Responsible for Crowdfunding Scams?

Under SEC rules, disclosures to investors must be true and correct, but what about crowdfunding? The Wall Street Journal points out that some crowdfunding campaigns aren’t quite there yet. For example, Ritot failed to disclose that it was located in … Continue reading

Posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Other Disclosure Worries

Aside from the fact that your disclosure to potential investors cannot be false or misleading, issuers must also realize that, when advertising their offering under the new Regulation D rules, their ads cannot suggest that their products or services can … Continue reading

Posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Fraud Insurance

There has been a proposal made to provide private insurance for the benefit of all crowd funding investors in the event of fraud perpetrated by the issuer. This would be an added cost (perhaps 2.5% to 5% of the face … Continue reading

Posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Wall Street | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

It’s Not Funny When It Happens To You

With all the excitement surrounding crowd funding, it’s easy to forget that the failure to provide full and fair disclosure to potential investors, even if they are “friends and family,” could result in a nasty legal battle. Witness former SNL … Continue reading

Posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Film, Investments, SEC, Small Business | Tagged , , , , , , , , , , , , , , , , , , , , , | Leave a comment