CrowdCheck Blog

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

I have long (oh so long) been one of those urging the SEC to give some clarity with respect to the status of “finders.” See here for the latest piece. Early-stage companies raising funds very often reach out to a guy who knows some guys who have money and have invested in startups in the past. If the first guy wants to be compensated by reference to the amount of money his contacts are able to invest, he may well have violated the broker registration requirements of the Securities Exchange Act…