“The rules aren’t even in place yet, but allegations of fraud are already flying.
“The Securities and Exchange Commission is crafting rules to implement a new law that makes it easier for private firms to raise money. But it has been struggling over how to do so in a way that protects investors from fraud.
“On Thursday, the agency criticized a Washington firm and its owner, Daniel F. Peterson, for allegedly using the new law to lure investors into forking over cash for a phony deal that promised what they called “fictitious” returns. Peterson denied the allegations.
“In a civil complaint, the SEC accused Peterson of telling investors that the law — known as the Jobs Act — would enable him to raise billions of dollars from the general public and generate 10-year returns of up to 1,300 percent for early investors.”
Read full Washington Post article here