SEC ADVISORY COMMITTEE CALLS CROWDFUNDING “AN OPPORTUNITY FOR FRAUD IN THE EXTREME” 

Quick breakdown:

  • Stephen Graham, SEC Advisory Committee co-chair, “This is just an opportunity for fraud in the extreme.  You can just imagine the unsophisticated investor that is just bombarded on the internet.”
  • The Committee proposed the following revisions to current SEC regulations: 1) Raising the requirement for public filings of 500 shareholders to 1,000, company employees would be exempt; 2) Help small companies avoid burdensome regulation for public offerings by raising the Reg A exemption from $5 million to $50 million.
@2 years ago