Yes, it’s generally permissible to hold a private conference call with certain investors. There is no requirement under federal securities laws that all communications must be shared equally with all investors—unless you are conducting a public offering or making general solicitation in a Rule 506(c) offering, in which case sharing material information selectively could raise concerns. […] The post Can I Have a Meeting With Some Investors Without Including Others? appeared first on Syn...| SyndicationAttorneys.com
Introduction: Common Violations in SEC Enforcement ActionsWhen the Securities and Exchange Commission (SEC) brings an enforcement action for anillegal private securities offering, the most common allegations involve fraud,misrepresentation, and failure to comply with registration or exemption requirements.Three of the most frequently cited provisions are:Section 10(b) of the Securities Exchange Act of 1934Rule 10b-5 under the […] The post What Can Happen If You Conduct an Illegal Securities...| SyndicationAttorneys.com
For entrepreneurs and fund managers looking to scale U.S.-based small businesses, the Small Business Investment Company (SBIC) program offers a compelling—though often misunderstood—option. SBICs allow private fund managers to access low-cost leverage from the U.S. Small Business Administration (SBA) to invest in eligible businesses, multiplying their capital while staying compliant with federal securities laws. What […] The post Small Business Investment Company: A Strategic Tool for F...| SyndicationAttorneys.com
FAQ 1:Can I stay Anonymous When Raising Capital from Investors? No, you can’t. If you are raising capital from private investors, you must be completely transparent. In fact, if you are doing a Federal offering under The Securities Act of 1933, Regulation D (Rules 504, 505, or 506), the SEC is going to require that […] The post Why You Can’t Be Anonymous When Raising Capital—and Who to Keep Out of Syndicate Management appeared first on SyndicationAttorneys.com.| SyndicationAttorneys.com
Background Under U.S. securities laws, issuers are strictly prohibited from offering or implying “guaranteed returns” to investors in connection with the sale of securities. This applies to both public and private offerings, including those conducted under Regulation D (Rules 506(b) and 506(c)). Key Legal Considerations Regulatory Risk and Liability Permissible Language Conclusion Securities laws prohibit […] The post Why Guaranteed Returns Are Prohibited in Securities Offerings appeare...| SyndicationAttorneys.com
For high-net-worth investors, real estate syndications offer the opportunity to particiate in institutional-quality investments with attractive returns. While some advisors recommend taking an “active” role to exert more control or avoid securities laws, the truth is: Passive investing is often the smarter, safer, and more tax-efficient choice—for both the investor and the sponsor. Advantages of […] The post How Savvy High Net Worth Investors Use Passive Real Estate Syndications to Bu...| SyndicationAttorneys.com
If you’re raising private capital—even from friends or small groups—think twice before diverting investor funds for personal or unauthorized purposes. Recent Securities and Exchange Commission (SEC) enforcement actions show that smaller, private offerings are not flying under the radar. And the consequences for misusing investor money can be severe: including disgorgement, lifetime bans, and even […]| SyndicationAttorneys.com
No, you can’t. If you are raising capital from private investors, you must be completely transparent. In fact, if you are doing a Federal offering under The Securities Act of 1933, Regulation D (Rules 504, 505, or 506), the Securities and Exchange Commission (SEC) is going to require that the “related persons” who are responsible […] The post Can I Remain Anonymous When Raising Capital from Investors appeared first on SyndicationAttorneys.com.| SyndicationAttorneys.com
Here are four considerations when deciding whether someone is— or is not — a good fit for your Syndicate management team: 1- Don’t Allow Bad Actors The asset management team has an obligation to make an inquiry as to the background of every member of the management team. People who have been in trouble with […] The post Who Should NOT Be in Management of a Syndicate? appeared first on SyndicationAttorneys.com.| SyndicationAttorneys.com
Introduction: Common Violations in SEC Enforcement Actions When the Securities and Exchange Commission (SEC) brings an enforcement action for an illegal private securities offering, the most common allegations involve fraud, misrepresentation, and failure to comply with registration or exemption requirements. Three of the most frequently cited provisions are: These rules prohibit fraudulent or deceptive conduct […] The post What Can Happen If You Conduct an Illegal Securities Offering appea...| SyndicationAttorneys.com
When raising capital under Rule 506(b) using a Series LLC structure, questions often arise about how many non-accredited investors are permitted across multiple Series, and whether the sponsor can continue forming new Series with non-accredited investors once a certain threshold has been met. Below, we address two frequently asked questions about these issues based on […]| SyndicationAttorneys.com