Tuesday, December 23, 2008

Legal Misfortune: Banned From Selling Securities

This article is part of a series of stories about the tragic consequences that can result from common legal mistakes that many entrepreneurs make. These are real-life examples that we have seen in our business law practice.
To circumvent the work of finding potential investors by networking within his personal network, one of our clients purchased a list of accredited investors and began cold-calling the list to see if they were interested in investing in his company. One of the persons he called complained to his state’s attorney general, an investigation ensued, and this person and his company is banned from ever selling securities in that state again.
The mistake could have been avoided with a 10 minute call to a securities lawyer (approximately $50) who could have instructed the entrepreneur how to legally approach the investors on the list that he purchased.
Learn about 7 Deadly Legal Mistakes that cost entrepreneurs thousands. Visit www.7deadlylegalmistakes.com to get a copy of our free mini course.


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