“The definition of insanity is continuing to do the same thing over and over, and then expecting different results.” The US Congress continues to show it’s inability to operate as it has been unable to pass a bill that will fund the operations of the federal government. A big chunk of Congressmen want overturn the … Read more »
Shutdown
Sorry folks. The federal government is closed. The moose out front should’ve told you. Not exactly. The Securities and Exchange Commission is still open and operational. The SEC’s current operational plan in the event of an SEC shutdown is available here (pdf). It’s not clear from reading this what will be operational and what is … Read more »
The Confusing Analysis of Whether You Are An Accredited Investor
There are few commentators who think the current definition of “accredited investor” is a particularly good definition for individuals who should be investing in private placements of securities. Basing the standard on income and net worth does give you a perspective that the person could withstand the potential loss of investment. The definition has become … Read more »
Compliance Bricks and Mortar – Solicitation and Advertising Edition
On Monday, the new SEC Rule 506(c) became effective, lifting the ban on general solicitation and advertising, creating a new era of public private-placements. These are some of the stories on the effect of the new the rule that caught my attention. Pros and Cons of General Solicitation by Joe Wallin in Startup Law Blog … Read more »
Voluntarily Submit Your Private Placement Advertisements to the SEC
In a head-scratching move, the Securities and Exchange Commission has created a portal for you to voluntarily submit general solicitation materials for private placements. With Rule 506(c) now in effect, companies are free to advertise their private placements of securities, so long as the company takes reasonable steps to ensure that investors are accredited investors. … Read more »
The New Era of Public Private-Placements
The Securities and Exchange Commission’s new Rule 506(c) goes into effect today, lifting the ban on general solicitation and advertising. Fund managers, start-ups, and established companies can make public, their private placements of securities. That is both a good thing and a bad thing. It’s good because start-ups can now pitch their products to potential … Read more »
Compliance Bricks and Mortar for September 20
These are some of the compliance-related stories that recently caught my attention. An entrepreneur who, come September 23, will not be tweeting for investors by William Carleton And not for concern that SEC proposed rules would impose pre-filing, information filing and other requirements. No, he was looking only at that “price” 506(c), the actual … Read more »
Yet Another Rule to Discourage Companies From Going Public
There has always been a tension between regulating the capital markets to protect the public and making capital formation more efficient. While I was focusing on Tuesday’s meeting SEC Advisory Committee on Small and Emerging Companies discussing changes to private placements, the SEC passed another rule that smacks public companies. Now public companies need to … Read more »
The Fall of Fredrick Douglas Scott
Fredrick Douglas Scott was named one of Ebony magazine’s “Top 30 under 30”, claiming to be the youngest African-American to found a hedge fund. In April 23, 2012, his company, ACI Capital Group, filed a Form ADV showing $3.7 billion in assets under management. It was a lie and Mr. Scott is a thief. Perhaps … Read more »
Unraveled: The Fall of Marc Dreier
Had it not been for Bernie Madoff, Marc Dreier would likely have been the most notorious fraudster of recent memory. The press coverage was stolen away from Mr. Dreier’s $3/4 billion scam by the billions Madoff stole. But Dreier’s theft was much more brazen and a lot crazier. Over the weekend, between shuttling the kids … Read more »