Do you meet the definition of an “Accredited Investor” under the new SEC Rules?

Are you an Accredited Investor or a Non-Accredited Investor? There are two classes of investors for the purposes of a Regulation D Offering: Accredited Investors (AIs) or Non-Accredited Investors (Non-AIs).  The U.S. Securities and Exchange Commission (SEC) recently amended the AI Definition in 17 CFR 230.501 (Rule 501) of the Securities Act, effective December 8,…

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Do You Really Have Time To Read & Understand The Heroes Act?

According to LexisNexis, the legislative outlook indicates there is a high chance of passage of 116 H.R. 6800, The Health and Economic Recovery Omnibus Emergency Solutions Act, or The Heroes Act, introduced in the House on May 12, 2020, which exceeds 1,800 pages or 300,000 words.  This would take the average reader, preferably a lawyer,…

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Governor Newsom – Please Order all Court Buildings in the State of California Closed starting March 16

The inconsistent approach of local, state and federal governments in response to the COVID-19, or new coronavirus, pandemic is beyond disappointing. By closing certain establishments such as public schools and failing to close others such as court buildings, the new coronavirus outbreak will likely continue to spread rapidly.  The following represents my reasoning as to…

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Three Men Arrested in $722 Million Cryptocurrency Fraud Scheme Targeting “Dumb” Investors

According to a Release from the Department of Justice (DOJ), three men were arrested today in connection with a cryptocurrency mining scheme that defrauded investors of $722 million, U.S. Attorney Craig Carpenito announced. The following information is quoted from the Release. Matthew Brent Goettsche, 37, of Lafayette, Colorado, and Jobadiah Sinclair Weeks, 38, of Arvada, Colorado,…

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Should Court Transcripts be Provided to Parties Free of Charge?

I learned during my first semester at University of San Francisco School of Law during Dean Brand’s welcome reception that in the United States, one only gets as much justice as one can afford.  In other words, there is no such thing as equal access to justice. I didn’t fully understand the weight of those words until recently.  During trial, I realized that…

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SEC may Reward Issuers and Auditors for Self-Policing, Self-Reporting, Remediation and Cooperation with Law Enforcement Authorities

In Release No. 44969 (Release) published on October 23, 2001, the United States Securities and Exchange Commission (SEC) announces its decision to commence and settle a cease-and-desist proceeding against Gisela de Leon-Meredith, former controller of a subsidiary of a public company, Chestnut Hill Farms, a Miami-based division of Seaboard Corporation.  The SEC’s order found that…

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I attended the CAI-GLAC’s Legal Update 2019 and Learned a Lot about the Impact of New Legislation

I serve as Treasurer of the Marina City Club Condominium Owners Association and requested our Management Company, Seabreeze Management, to sign me up for the CAI-GLAC’s Legal Update 2019. The speakers were awesome, lunch was delicious and people were friendly. According to the Community Associations Institute (CAI), about six out of 10 new homes are…

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Telegram Accuses The SEC Of Failing To Provide Clear Guidance And Engaging In Improper Regulation By Enforcement

On November 12, 2019, Telegram Group Inc. and TON Issuer (Defendants) filed a response to the U.S. Securities and Exchange Commission (SEC) complaint originally filed on October 11, 2019.  Not surprisingly, Defendants deny all allegations in the SEC complaint.  According to the response, Defendants mainly rely on the following three arguments:   Defendants conducted a…

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Broken Windows: SEC Commissioner Hester M. Peirce’s Remarks before the 51st Annual Institute on Securities Regulation

Last week, U.S. Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce, delivered a speech providing recommendations on how to make the SEC’s enforcement program even better than it is. First, the SEC should be on the lookout for rules that need to be written, eliminated or rewritten. By modernizing its rules, the SEC can…

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SEC Charges Adviser for Running Ponzi Scheme Targeting Haitian Community Including his Family and Friends

Last week, the U.S. Securities and Exchange Commission’s (SEC) issued a press release to announce that it filed a complaint against Ruless Pierre a/k/a Rules Pierre (Defendant), alleging that he operated a multimillion-dollar investment club that was actually a fraudulent Ponzi scheme targeting members of the local Haitian community as well as his family and…

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