The SEC has consistently opposed the use of unregistered finders to help companies raise money. In a recent pair of cease and desist orders, the SEC has raised the stakes, not only for finders, but also for the companies that use them.
Under these orders, if the finder is found to be a broker and has failed to register, as required by Section 15(a) of the Securities Exchange Act of 1934, the finder’s violation may now support regulatory action against the company which engages the finder, as well as other companies which may have a role in the offering.
Pryor Cashman Partners Stephen M. Goodman and Bertrand C. Fry and Of Counsel Michael T. Campoli, all members of the firm's Corporate and Investment Management groups, have authored a legal update analyzing the background and the implications of these orders, entitled Is An Issuer Responsible For The Acts Of Its Unregistered Finder?"
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.