Are investment clubs required to file with SEC?
I have been extended an opportunity to join an investment group. The questions that I have concern the legality of investment groups, filing with the SEC. They are asking for an annual membership fee, plus an initial deposit of $10000.00 to join. The recruiter says that I will have total control over my deposit and decisions on which projects the group has, that I wish to invest in. They are not offering any guarantees on the returns of each project. Just that it will given me some opportunities to earn more money.
The way the person makes it sound, as if they buy land and build, then sell for profits. That they are using the members funds to finance the builds. Then they dispersed the profits in equal shares to all who invested in that project. Is this legal without filing with the SEC?
Could this just be a private crowd funding group?