Subject: File No. JOBS Act Title III
From: Larry A. MacDonald

May 1, 2012

In the old days, bucket shops defrauded naive investors who had no way to evaluate stocks out of large amounts of money.

In the new days, the Internet offers ways to immediately access facts, opinions, and discussions about any company that might attempt to raise money online using the Internet. The Internet encourages ratings, discussions, and is great at revealing cheats and dishonesty very quickly and effectively.

There is currently no method for those with a specific expertise to find and invest in start-ups that they know have great potential based on their own expertise to evaluate the opportunity.

America has handicapped its entrepreneurs with laws that attempt to protect the naive and foolish from investing in dumb enterprises. But it hasn't made a similar effort to protect those addicted to gambling. Why the hypocritical attitude? Why not allow people to make their own judgements and gamble a bit on companies that need the money rather than having them give it to casinos and lotteries?

Jobs are created by the small companies, not the large ones. The small companies have no streamlined way to attract risk capital, which is the foundation of American success over the last 250 years.

If you are going to require audited financial statements, at least make them simple and easier and cheaper than the current ones. Transferring the liability to CPAs will just cost everyone more. In the end, it is about trust and integrity. If people invest without being satisfied about the integrity of management, then they are simply playing the penny stock market. We don't give penny stock investors special protection, why have it for small company investors?

If you think audited financial statements protect investors, wake up and look at the scandals over the last decade.

Let us not allow overkill to kill the ability of the Jobs bill to create jobs.

Life is a risky business. Socialism is predictable, but we all know where that leads.