May 22, 2012
Ladies and Gentlemen,
It seems that all the fraud angles have been covered by the professionals herein.
STATUTORY FRAMEWORK
1. Congress passed the JOBS Act on April 5th, 2012 to help "JUMP START OUR SMALL BUSINESSES," Not to "STRAP" Small Businesses with financial burdens, i.e., legal fees, broker fees, consulting fees, accounting fees, audit fees, FINRA fees, membership fees, or to limit their ability to raise capital due to overzealous rules and regulations.
QUESTIONS AND COMMENTS
1. What happens to Regulation D Rule 504?
I've read many questions and comments regarding Rule 506, but what about Rule 504? What need do we have for Rule 504 if Crowdfunding is available up to $1M? I propose, for the sake of simplicity, renaming Rule 504 as "Rule 504 - Crowdfunding" making the appropriate changes. This would also make it easier for each state to implement the new Rule, by simply adjusting their current Rule 504.
2. Disclosure Requirements Fees
Obviously entrepreneurs need to disclose material information that could effect an investors investment decision. However, to give the JOBS Act its full effect, i.e., creating jobs, how about including certain provisions limiting the fees charged to Issuers by broker-dealers, crowdfunding platforms, CPAs, governing agencies and attorneys? How about helping the entrepreneurs create jobs by clearing out the sharks who are currently gathering at light speed to charge massive fees to any entrepreneur who dares to enter the Crowdfunding waters?
I believe everything else has been covered...