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State agency warns of possible dangers of crowdfunding investment opportunities

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State agency warns of possible dangers of crowdfunding investment opportunities
Summary
Investors need to approach crowdfunding investment opportunities with great caution.
Description
Congress enacted the JOBS Act and directed the SEC to adopt rules to carry out a new exemption to allow crowdfunding.Until the rules are adopted,“any offers or sales of securities purporting to rely on the crowdfunding exemption would be unlawful under the federal securities laws,”the SEC said in a statement.

“Before the SEC rules are adopted,investors should beware of promoters who jump the gun by offering investments through crowdfunding now,”department Securities Division Director Bill Beatty said.“Once exempt,crowdfunding investments will not be reviewed by regulators before they are offered to the public. Investors will need to be vigilant to protect themselves.”

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