Download: SEC_Finders_2004__1_.pdf

Individuals or entities acting as unregistered financial intermediaries, "finders" or "investment bankers" (hereinafter "finders") constitute a major problem in corporate finance transactions and in the area of mergers and acquisitions. The vast majority of these persons are unregistered broker-dealers under federal and state securities laws, and accordingly transactions in which they are involve jeopardize the issuer, its officers and directors, and other investors because of the use of the unregistered/non-exempt person. Further, some of the individuals have adverse regulatory histories or were closely affiliated with those who had, and some even had been barred or suspended from broker-dealer or agent registration by regulators or convicted of financial fraud. The bad ones too often bring financial arrangements that do not work to the advantage of the entity seeking a merger or needing financing, and taint the legality of transactions in which they are involved. Some are purveyors of "shell corporations," which almost invariably involve significant fraud both on those who purchase or merge with the shells, and in the subsequent after-market for the stock of the entity into which the shell is merged.

More articles on Securities Alerts and Issues can be found in our Securities Alerts: SEC & FINRA Section

Product Files (DOWNLOAD)

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.