Private funds will be able to advertise and solicit for
investor, provided all of the investors are " accredited
investors ." The Jumpstart
Our Business Startups Act will dramatically change the way capital raising
for private funds operates.
The drawback is the loss of 35 non-accredited...
On March 27, 2012, the U.S. House of Representatives
passed the Jumpstart Our Business Startups Act (of the JOBS Act as it is more
popularly known). President Obama is expected to sign the Act shortly. The Act
is intended to facilitate capital-raising by reducing regulatory burdens. The
Very recently the SEC published its final report on the
SEC Government-Business Forum on Small Business Capital Formation from the
November 17, 2011 event, which I attended in DC. Participants breathlessly
await this report each year to see what recommendations make the hot list for
In this part II, let's hit some key recommendations from
the SEC Small Business Forum that did not make it into the JOBS Act and
that advocates are still hoping will get some attention:
"finders" in M&A and private offerings to have a simplified
On this edition, Dick Phillips and Alan Berkeley of K&L Gates and Stan Keller of Edwards Wildman discuss the JOBS Act (Jumpstart Our Business Startups Act), which was signed into law April 5 by President Obama. They provide an overview of the legislation and explore some of the controversies of the...
With Democrats like Representative Carolyn Maloney of New
York, who needs the Republicans? When special interests pursue self-interested
legislation - or seek to block legislation that affects their
interests - Maloney waves the jobs and economic growth flag for campaign
contributors rather than...
by Jonathan B. Wilson and Dianne L. Trenholm
On April 5, 2012, President
Obama signed the Jumpstart Our Business Startups Act (the "JOBS
Act"), H.R. 3606, into law calling it "a potential game-changer"
for startup companies. President Obama signed the JOBS Act just...
In order to try to boost the number of companies going
public, the recently enacted JOBS act provides for certain procedural and
reporting advantages for "Emerging Growth Companies," which are defined in the
Act as companies within five years of their IPO and with revenues less than $1
The People's Republic of China is one country that EB-5
practitioners and related EB5 professionals cannot afford to neglect. The top 5
countries  in
2012, for EB-5 alien entrepreneurs are: China, South Korea, Taiwan (region),
Iran and Venezuela. Chinese investors account for an overwhelming...
For the more seasoned EB-5 practitioner, memories of when
construction jobs could not be counted towards the job creation requirement remain
vivid. While it is true that the some
construction jobs may now be counted, with the plethora of real estate projects
being introduced and managed by Regional...
by Karl J. Ege, Martin E. Lybecker, Danielle Benderly, and James T. Carroll
The JOBS Act's stated purpose
is to spur job creation and economic growth by improving access to capital for
emerging growth companies. To do so, the JOBS Act will make some of the most
significant changes to the U...
"Everyone agrees the title was a work of pure genius,"
says Dick Phillips of K&L Gates in a recent podcast , referring to the Jumpstart Our Business
Startups (JOBS) Act. "It's impossible to vote against in an election year."
When a law is so well named, it's important...
Regional Centers 
lawfully raise capital within the EB-5 Program  pursuant to one or more exemptions from
registration set forth in the United States securities laws. The most commonly utilized exemptions in EB-5
offerings are Regulation D (the Private Placement exemption) and Regulation S...
The seven-member Politburo Standing Committee in China
greeted the world in the Great Hall of the People on November 15, 2012 in
Beijing. What does the new leadership in China mean to EB-5 practice? Most
believe it is too early to tell. However, a few welcoming changes have already
taken place. ...
When the JOBS Act was enacted in April 2012, it raised a
significant amount of excitement in the EB-5 community. At the time, there was
a general consensus that the Act could change the landscape of EB-5 private
offerings. However, the Securities and Exchange Commission's (SECs) indefinite
A path to U.S. citizenship premised on an immigration
program crafted to help create jobs, and surrounded with misrepresentations and
false documents was the lure used by Anshoo Seithi and his controlled entities
to defraud 250 investors of millions of dollars, according to an SEC complaint.
A path to U.S. citizenship premised on an immigration program crafted to help create jobs, and surrounded with misrepresentations and false documents was the lure used by Anshoo Seithi and his controlled entities to defraud 250 investors of millions of dollars, according to an SEC complaint. The Commission...
On February 6, 2013, the Securities and Exchange
Commission (SEC) charged the EB-5 project A Chicago Convention Center (ACCC)
and its principal Anshoo R. Sethi with securities fraud. The project was
marketed primarily in China, with great pomp and fanfare. It offered 499 limited...
It took until just before Memorial Day, but apropos timing as the House Financial Services Committee, on May 22, officially approved 11 bills to help small businesses with capital formation and growth. Many on the Hill are fashioning this group of bills JOBS Act 2.0, as a natural follow to the Jumpstart...
As I have for many years, last week I attended the annual SEC Government-Business Forum on Small Business Capital Formation. This Congressionally mandated event leads with a few panels followed by breakout discussion groups that develop formal recommendations to the SEC staff and commissioners to improve...
Capital formation is one of the primary missions of the SEC. Commissioner Kara Stein recently discussed this basic SEC mission in remarks delivered at the Stanford Rock Center for Corporate Governance, Stanford Law School (here), outlining several new options. The Commissioner began by noting that while...
Last year the IPO market was overheating – a record number of initial offerings were conducted. Nevertheless, SEC Commissioner Daniel Gallagher gives the SEC a grade of “incomplete” in the area of capital formation in recent remarks. Commissioner Daniel M. Gallagher, “Grading...
by David Carroll
Since the enactment of the Jumpstart Our Business Startups Act (the “JOBS Act” ) in 2012, the Securities and Exchange Commission (“ SEC “) has slowly been making its way through the titles to the JOBS Act to promulgate the final regulations for implementation...
by David Carroll
The next few years may be the largest watershed event in opening up private equity capital since the 1980s when Regulation D was first published by the Securities and Exchange Commission (“SEC”). By allowing general solicitation and general advertising in private offerings...