Tagged: legal

CFPB Takes Action Against Online Lead Aggregator for Loans

Richard Cordray testifying 1

The Consumer Financial Protection Bureau (CFPB) filed suit in federal court against co-founders who allegedly sold consumer loan applications without appropriate safeguards.  The loans were said to be sold containing sensitive personal data without assessing the sources of the leads nor the purchasers they sold… Read More

Crowdfunding is Crowdfunding to a Crowd: But Any Other Name Would Work As Well

The Crowd Benjamin Money Stadium

Exploring the dynamics of equity crowdfunding and provoking thought about what crowdfunding means to you.  Crowdfunding has always existed, and will continue to exist, as long as there are people and scarcity of resources. People have pooled and transferred resources for the benefit of another,… Read More

Report: SEC Has Received 30 Applications for Title III Crowdfunding Portals

Reg CF Title III

Title III crowdfunding will join the other two variants of investment crowdfunding, Title II and Title IV (Reg A+) this coming May to create a more vibrant capital ladder for companies seeking to raise capital using the internet. While no exemption is perfect, both accredited… Read More

Complying with AML Laws: Challenges for the Fintech Industry

Money Dollars Art 100

  “Silicon Valley is coming.  There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking.” This warning came not from a pundit or Silicon Valley lobbyist, but from Jamie Dimon, the Chairman and Chief Executive Officer… Read More

A New Bill Looks To Fix The Current “S Corp” Rules For Easier Crowdfunding; Why It Needs To Do More

Investigation Money Inquiry

A new Bill (H.R. 4831) was recently introduced by Representative J. French Hill which looks to amend the rules of the Internal Revenue Code of 1986 (the “Code”) concerning  “subchapter S” qualified corporations (“S Corps”), and the limited number of permitted S Corp shareholders, to… Read More

Reg A+: A Successful First Year Despite Regulatory Ambiguities 

Regulation A+ SEC

The “democratization of investment” in historically closed industries have been the buzzwords of choice since the JOBS Act was signed into to law in 2012. But only since March 25, 2015, when the SEC voted to adopt the proposed rules implementing Title IV, was access… Read More

Crowdfunding Platforms Must Be Conscientious In Disclosing Borrower Credit Information

Guard Safety

  In translating the JOBS Act into final regulations, the SEC sought to protect investors in myriads ways: limiting certain opportunities to accredited investors, implementing caps on the annual amount certain investors may invest, and requiring certain disclosures, among other things. Understandably, the bulk of… Read More

Real Estate Related Crowdfunding & P2P Lending Surge in China: Opportunity or Crisis? 

Beijing_northeast

The property prices in China’s major cities has surged in recent months, first in Shenzhen, then Shanghai and Beijing. The rapid appreciation of property is drawing people’s attention back to the concept of real estate crowdfunding. Four types of real estate crowdfunding Real estate crowdfunding… Read More

Scottsdale Capital Advisors Challenges FINRA Authority to Regulate in Federal Court

Accountability

Scottsdale Capital Advisors Corp is challenging the Financial Industry Regulatory Authority’s (FINRA) ability to act as a securities regulator in Maryland federal court by stating it does not truly have a Congressional mandate to wield such power. The lawsuit is in response to proceedings pertaining… Read More

The Netherlands is Set to Update Debt & Equity Crowdfunding Rules

Anne Hakvoort

On April 1st, the regulatory environment for investment crowdfunding will change in the Netherlands. The Netherlands Authority for Financial Markets (AFM) published recommendations in December of 2014 regarding a regulatory approach for internet finance. A proposal was released back in December that was summarily updated the… Read More

Ex-Fundrise CFO Tells Washington Post “Extortion Allegations are Baseless”

Boxing Gloves Fight Box

Last month, Crowdfund Insider reported that Fundrise had terminated its CFO for allegations of extortion.  In a filing with the SEC, Fundrise CEO and founder Ben Miller stated; “I am saddened to have to inform you that an employee of our company has engaged in… Read More

Lawsuit Filed Against iFunding “Discontinued with Prejudice”

Gavel Dismissed

In a pretty big win for the real estate crowdfunding platform iFunding, the lawsuit filed against it by CapStack Partners was “discontinued with prejudice in all respects” yesterday. Crowdfund Insider reported in January that CapStack Partners had filed a grievance with the Supreme Court of… Read More

Fintech Law in Asia Conference Scheduled to Take Place in Japan

Chen Hung Yi

In response to the rapid increase of Fintech in Asia, a new conference has been launched to address the fast changing environment for financial firms. The 2016  Fintech Law in Asia Conference is scheduled to take place at Nagoya University in Japan this April. The… Read More

Entrepreneurs Beware: The EB-5 & JOBS Act Industries Are Under the SEC Enforcement Microscope  

enforcement action ahead

The recent economic downturn is not the only challenge for entrepreneurs in the EB-5 and JOBS Act industries.  Rather, the challenges include close regulatory scrutiny by the United States Securities and Exchange Commission’s (SEC) Division of Enforcement.  While both EB-5 and the JOBS Act were… Read More

Lending Club Reacts to Concerns Over Madden vs. Midland Decision

Madden vs. Midland

Lending Club (NYSE: LC), the largest marketplace lending platform in the United States, has altered operations in light of concerns over the Madden vs. Midland decision delivered by the Second Circuit Court of Appeals in May last year. This court case has cast a bit of… Read More

COIN Tossed Into Class Action Lawsuit by SF Lawfirm

Unhappy Balloon Sad

COIN, the one card to rule them all, has been slapped with a class action lawsuit filed by Kronenberger Rosenfeld, a San Francisco-based law firm that specializes in internet, tech and media law.  The suit was filed against COIN alleging they “knowingly marketed a defective product”…. Read More

Tough Month. iFunding Hit with Second Lawsuit

Unhappy Balloon Sad

Real estate crowdfunding platform iFunding has been hit with a second lawsuit. iFunding was recently blindsided by a suit filed by CapStack Partners in the New York Supreme Court. Today The Real Deal is reporting that iFunding is party to a second suit, this one… Read More