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THE PRIVATE INVESTOR TOOLKIT
CAUTION FOR ENTREPRENEURS
On a
daily basis we come across people who want to raise money from private
investors, but insist that "I have a great business plan, I don't need to bother
with a private placement and all of that stuff."
If you
are one of those people, we strongly suggest that you keep reading.
There
are several websites and "gurus"' out there that are leading people to believe that
you can legally raise money from private individual (or
"angel") investors
without having to comply
with or "worry about" SEC
(Securities and Exchange Commission) regulations.
Those websites and gurus are wrong. And following their advice puts you in jeopardy of
losing your business as well as possible fines and sanctions from the
SEC and other serious legal
consequences. There are specific rules that must be followed.
We
cannot stress this enough: REGARDLESS OF WHAT YOU MAY READ OR HEAR TO
THE CONTRARY - YOU MAY NOT LEGALLY APPROACH AND ASK PEOPLE TO INVEST IN YOUR BUSINESS WITHOUT
FOLLOWING SEC REGULATIONS REGARDING THE SOLICITATION OF PRIVATE
INVESTORS AND THE SALE OF PRIVATE SECURITIES.
Why
take that chance when it is so easy to get the information and
personal guidance that you need to do
it the right way from the start?
If you
think that you don't need to bother with properly preparing a private
placement offering and solicit investors by following SEC rules and
regulations, read what happened to one of many companies that thought the
same way:
For Immediate Release: 04/18/2008
Commission Halts Unregistered Activity
By Progressive Energy Partners, LLC #4 and Progressive Energy
Partners, LLC
Harrisburg, PA, 04/18/2008 - To halt the offer and sale of
unregistered securities in Pennsylvania, the Pennsylvania
Securities Commission issued a Summary Order to Cease and Desist
against Progressive Energy Partners, LLC #4 (PEP 4) and
Progressive Energy Partners, LLC (PEP), both entities with an
address in Costa Mesa, California. PEP was the manager of PEP 4.
PEP 4 was offering for sale limited liability company membership
units (Units) in an oil and gas well project (Project).
In or about March 2008, a representative (Representative) of PEP
cold-called at least one Pennsylvania resident (PA Resident) and
offered the Units for sale. The Representative stated that the
cost of a Unit is $25,000 and the minimum investment is one
Unit; that the PA Resident could make $3,500 monthly on an
investment in one Unit; and that the PA Resident would not be
expected to do anything else other than send a check.
In or about March 2008, PEP 4 sent offering materials
(Materials) to the PA Resident via FedEx. The Materials state
that there are 72 Units available at a cost of $25,000 each, for
a total of $1,800,000; that PEP 4 will use the investment
proceeds to fund the Project which involves the drilling of two
oil and/or gas wells in Pleasants, Tyler, and Ritchie Counties,
West Virginia; and that PEP will have the exclusive authority to
manage the affairs and operations PEP 4.
In or about March 2008, the Representative offered one of the
Units for sale to the PA Resident for $25,000. The PA Resident
had no substantive, pre-existing relationship with PEP 4 or PEP,
or with the Representative. The PA Resident was not an
accredited investor under Rule 501 of Regulation D, and did not
have sufficient knowledge and experience in financial and
business matters to be capable of evaluating the merits and
risks of the investment.
The Materials failed to disclose that on January 12, 2007, the
South Dakota Department of Revenue and Regulation, Division of
Securities, issued a Cease and Desist Order against PEP as a
result of the offer of unregistered securities in a similar oil
and gas project, which is a material fact necessary in order to
make the statements made, in light of the circumstances under
which they were made, not misleading.
The Commission ordered Progressive Energy Partners, LLC #4 and
Progressive Energy Partners, LLC to stop offering or selling the
Units in the Commonwealth of Pennsylvania, in violation of the
Pennsylvania Securities Act of 1972, and in particular Sections
201 and 401 thereof.
Any further solicitations or sales made by these respondents in
Pennsylvania will constitute violations of the 1972 Act and the
Commission's Orders. Any person who is solicited by or has
information about these respondents is asked to immediately
notify the Pennsylvania Securities Commission by calling
800-600-0007, or, in Harrisburg: (717) 787-8062, in Pittsburgh:
(412) 565-5083 or in Philadelphia: (215) 560-2088. |
So you STILL
think you can get by without "going through the trouble" of doing things
the right way when it comes to raising money for your business?
** THE
PRIVATE INVESTOR TOOLKIT coaching and materials provides you with exactly what documentation is
required, the forms and exact instructions on how to fill
them out, tells you exactly where to find the investors, how
to legally approach them, how to convincingly present your proposal
to them and then legally accept their money. You are also
coached on how to handle issues that may arise after you receive the
funds from your investors.
Knowing
the things provided by our personal coaching are vital to your success
in raising money from private investors.
If you
are someone who is willing to put in a bit of effort, can follow some
basic directions and can
appreciate getting and putting good advice to use and
want to get all the money you need for your Business or Real
Estate projects the correct and legal way, then I encourage you
click the button below to purchase THE PRIVATE INVESTOR TOOLKIT
personal 1-on-1 coaching and materials right now.
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