Updated over 15 years ago on . Most recent reply
REG D, rule 506 for private offering?
Has anyone here had any personal experiences with private equity or debt offerings exempt from SEC registration?
I've been reading on it about ten hours a day for the last three days! Just wondering if anyone had some personal experience(s) in which they could share.
:superman:
Dustin
Most Popular Reply
You need to worry more about your state laws than federal laws. In a worst case scenario, where your investors lose money, you can bet your life that their attorney will file both a civil and a criminal complaint against you with your state. Not a federal complaint.
Why criminal? Because if the state decides to prosecute you and they win their case, it makes it much easier to win a civil case.
So, read up on your states laws, talk to an attorney who specializes in regulatory law, and follow his advice to the letter.
I personally know someone who was convicted of fraud simply because his investors lost money and he violated several securities laws in this state.
He then preceded to lose a civil case and lost everything, spent time in jail, and lost his company and his marriage.
The reason I say follow your states laws is because they are usually more applicable and more stringent then federal regulations. Plus, attorneys that work in this field will also be familiar with federal regs as well.