LexisNexis® Legal Newsroom
House Drafts Increase in Reg A Limit to $50M

The US House of Representatives Financial Services Committee has released a draft bill called the Small Company Capital Formation Act of 2011. The first salvo in what we hope will be more Congressional efforts to help small companies with capital formation. The bill, just four pages long (!), basically...

Commissioner Aguilar on Capital Formation and Regulation

The relationship between capital formation, effective regulation and how this is being thwarted by certain foreign issuers were the subjects of SEC Commissioner Luis Aguilar's remarks to the Council of Institutional Investors at their Spring Meeting on April 4, 2011 (here). Much of the current...

Capital Formation – The Wrong Way

The CEO and President of Magnum d'Or Resources, Inc., Joseph Glusic, had a plan to bolster the cash of the company through stock sales. Magnum is a Fort Lauderdale, Florida based company which converts scrap tires into rubber compounds. Under the plan t stock would be registered with the SEC...

The Lure of Citizenship is the Key to an Offering Fraud Halted by the SEC

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...

SEC Commissioner Stein on Capital Formation

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...

SEC’s Crowdfunding Rules

Crowdfunding is a popular and controversial form of selling securities using the internet. Prior to the passage of the JOBS Act, which was designed to facilitate capital formation for small companies, such sales generally would have been required to comply with the registration provisions of the securities...