CrowdCheck Blog

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

When do companies need to tell investors about criminal proceedings that allege their officers and directors have engaged in fraud?  According to the Commonwealth of Massachusetts, it may be sooner than companies expect.   Realpha Assets Management, Inc. (“Realpha”) was found liable by Massachusetts for failing to disclose in its Reg A offering the ongoing criminal proceeding involving allegations of cheating, fraud and forgery against their CEO even though there had not been a conviction.…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

The SEC today decided to make a statement against companies considering using Regulation CF for fraudulent offerings, and funding portals that facilitate the fraud. A copy of the complaint can be found here, https://www.sec.gov/news/press-release/2021-182. On September 20, 2021, the SEC filed in federal court a complaint against sponsors of a marijuana real estate venture, and the TruCrowd funding portal, and its owner. The complaint alleges the sponsors of the issuer hid the existence of a…

Online securities platforms should be paying attention to the Lorenzo case, which the Supreme Court decided last month concerning the scope of Rule 10b-5 fraud liability. The case involved a broker who sent out a couple of emails at the direction of his boss. The boss created the content of the emails and approved them. All Mr. Lorenzo did, in effect, was add his name and press send. But he knew that there were misstatements in those emails. It’s already clear that anyone who makes a false…