Doug Cornelius on compliance for private equity real estate
New York City passed a law imposing specific requirements on real estate owners in the city. As buildings are becoming “smarter” landlords are collecting more data about the building coming in, moving around inside, and exiting from their buildings. This is largely for good intentions. It makes the elevators more efficient. It makes the heating … Read more »
Knight Nguyen Investments raised millions from its retail investor clients to invest in securities that met the firm’s investment criteria: (a) always allocate “secured” capital to attract at least 10% returns, and would select entities (b) with taxable income to support returns and that often do over $10 million of revenue; (c) that are … Read more »
Peter Quartararo met with potential investors and told them that he had access to “pre-IPO” stock in Peloton, WeWork, and Airbnb. The first potential investor was an acquaintance that had done a favor for Mr. Quartararo. He offered to let the investor buy the shares in WeWork and AirBnB at his cost, with was less … Read more »
Zach Horwitz was struggling actor using the stage name “Zach Avery.” His IMDB entry lists him in minor parts in mostly bad movies. His biggest movie role is an uncredited part as a medic in Brad Pitt’s “Fury.” Mr. Horowitz couldn’t figure out how to get rich and famous, but he did hatch a plan … Read more »
These are some of the compliance-related stories that recently caught my attention. The Bizarre Case of Snowden and a Get-Rich-Quick Real Estate Investing ConferenceJack PoulsonVice.com Edward Snowden joined an online “elite real estate investment club” Saturday afternoon, spoke for several minutes about whistleblowing, called out one of the hosts for allegedly running a Ponzi scheme, … Read more »
I think many frauds start with a failure to recognize mistakes. Yes, it’s hard to tell your investors that you lost some of their money. It makes it harder to attract new investors and additional investments. It gets really hard to do that when you go to jail. Martin Silver was the co-founder, managing partner, … Read more »
These are some of the compliance-related stories that recently caught my attention. Alex Oh Named SEC Director of Enforcement Washington D.C., April 22, 2021 — The Securities and Exchange Commission today announced that Alex Oh has been appointed Director of the Division of Enforcement. Oh was most recently a partner at Paul, Weiss, Rifkind, Wharton … Read more »
In connection with Securities and Exchange Commission’s new Marketing Rule, I’m expecting the SEC to withdraw a bunch of the no-action letters that address advertising by registered investment advisers. For example, the Clover no-action letter doesn’t seem to fit with the new Marketing Rule and will likely have to be withdrawn to avoid confusion. The … Read more »
These are some of the compliance-related stories that recently caught my attention. U.S. Senate votes 53-45 to confirm Gary Gensler as Biden’s SEC chiefKatanga JohnsonReuters “Gary Gensler has the perfect mix of market expertise, regulatory experience and commitment to the public interest to be an outstanding SEC Chairman,” said Barbara Roper, chief investor advocate at … Read more »
To pull the pieces together, private funds are exempt from the Investment Company Act under Section 3(c)(1) or Section 3(c)(7). Under (1) the fund is limited to 100 investors. Under (7), there is no limit on the number of investors, but the investors have to be “Qualified Purchasers.” The definition of “qualified purchaser” in Section … Read more »