The JOBS (Jumpstart Our Business Startups) Act, signed by President Obama April 2012. The JOBS Act is commonly referred to as “crowdfunding.” U.S. Senator Scott Brown (R-MA) championed this legislation, stating: “Crowdfunding is a game changer for startups and entrepreneurs in Massachusetts and across the country. These small businesses now have a powerful new tool to grow and create jobs. And now every American, regardless of income level, is able to invest and get in on the ground floor of a great business idea. This bill has great potential for our economy and job growth. With continued bipartisanship, I believe we can pass more jobs legislation.”
Senator Brown may be correct in his assessment of the positive impact of the JOBS Act. But opponents of the JOBS Act already have been proven correct in that crowdfunding is a gamechanger for fraudsters who are using this new legislation to con investors out of there savings.
Commonwealth Secretary William Galvin filed fraud charges against two out-of-state oil and gas operations in connection with their sale of unregistered securities to Massachusetts investors. And, this is just the beginning.
Investing is not easy, and you should never rely solely on the investment promoters for information concerning the investment. Investing your savings without first seeking counsel from an expert who has no stake in the investment is akin to flying a plane without a pilot. If you get lucky, you’ll land safely, but the odds are that you’ll crash and burn.
Call Wittenberg Law at (310) 295-2010 before you invest. Wittenberg Law has affordable rates for due diligence services. Additionally, Wittenberg Law can help you determine whether you are legally entitled recover money lost in an investment. Protect your savings, call now.