Subject: File No. S7-09-13
From: Heather Duke

December 3, 2013

This is a very bad idea.

The idea of crowd funding is to gather together like-minded individuals to support a project they all believe in, and it gives them a pride of ownership (even if it's just bragging rights) when a project succeeds. There is already a long list of requirements and steps already involved in getting a project going. Once you involve the SEC and other federal requirements, small projects will be kicked to the curb.

And then of course, you are opening up a whole new window of opportunity for fraud. My mailbox is already full of SPAM and internet fishing requests. Giving fraudsters a legitimate leaping off point will only hurt the people the crowd funding was created to help.

Don't do this. Spend more time regulating reverse mergers instead.