September 21, 2012
I don't really understand why so many pundits say the change in the laws as a result of the JOBS Act, particulary the removal of the ban on general solicitation, will result in an increase in fraud. If someone is willing to break the law by offering fraudulant securities or other fraudulant investment offerings, then why would they even care about the laws regarding general solicitation. Surely, if they are willing to commit fraud, then they are probably already using whatever methods they deem necessary to reach their victims(including general solicitation), regardless of the legality of their methods.
The SEC needs to act immediately to implement its proposal, as these laws have hendered capital formation and investment choices for way too long. The SEC should also develop a simple form to be used by issuers for investors to self-certify that they are accredited. Having investors themselves certify that they are accredited is the most "reasonable" step an issuer can take to be certain that investors are accredited.