April 20, 2012
This Bill (HR3606) will be a great Bill if Structured Correctly. The Ball is in YOUR (SEC) Court now
However, as is now with "Crowdfunding" the money is held with
PayPal or Amazon.com. Both charging 3% to 5% for it, which would reduce the capital available to the Issuers. The funds should be held just like Attornies are doing, in a "Client Trust Fund" or in a "Bank Escrow", which does not cost practically anything if the Funding Portal banks with the same Bank anyway.
Since the maximum a little guy can spend on these Issues is
$2,000/Year, there should not be any worry that he/she are
able to gamble away the Family 401K/retirement money.
.... they are spending a lot more in Las Vegas now
Also crooks should be fined and penalised well (put in Jail for at least 10 yers) if funding Portals cut massing around with the Funds or if Issuers spending and using the funds for other than they are stating it on the literatures to Investors.
Funding Portal's Principals should be finger printed and cheched out for any Criminal Records. (that should include DUI-s and Medical Maruana users).
P/S: To limit the Issuers to a Billion Dollar Corporations was crazy to say the least
It should have been limited to up to $50 million USD only.
A Billion dollar Corporation has no need for Crowdfunding, but that leaves the scaptics and opposation with lots of ammunation