Do Two New Fraud Cases in Massachusetts Reveal the Perils of Crowdfunding? Not So Fast

Between now and whenever the SEC releases its final crowdfunding guidelines, we’re likely to hear a lot more about the potential pitfalls of letting anyone invest in private companies. Just as in the run-up to legalizing crowdfunding, lots of that talk will center around fraud.

So headlines yesterday like Oil companies use ‘crowdfunding’ exception to defraud investors (BBJ) and Crowdfunding takes early hit in Massachusetts (InvestmentNews) got my attention. But, thankfully, these cases aren’t actually warnings about the dangers of crowdfunding at all. In fact, they have almost nothing to do with it.

Here’s how the Massachusetts Secretary of the Commonwealth describes the cases in a release:

Read More at Bostinno

Sponsored Links by DQ Promote

Send this to a friend