Thursday, October 1, 2009

Unregistered, non-exempt securities

Even a phrase as annoying and opaque as "soliciting sales of unregistered, non-exempt securities" relates to the so-called "real world." Just two days ago a federal court issued an injunction on some people who were, allegedly, trying to issue securities without bothering to get them registered. If you read the announcement at the link at the bottom of this post, you'll see that the SEC is just an army of attorneys--no criminal charges are being discussed here. The SEC is seeking all that they can, which is "permanent injunctions, disgorgement of ill-gotten gains, and civil penalties against all defendants." In other words, they would like to use the permanent injunction as a reason to deny these people any opportunity to work the securities business or offer securities in the future. They want them to give up the money they took (disgorge). And, they want the courts to hand down a stiff monetary penalty against them. You'll notice that specific sections of the Securities Act of 1933 are referenced, and it will do you good to read it all in the native tongue. Enjoy:

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