3 ms·

I think you misunderstand what the FTC does. The FTC does not have the power to charge individuals under criminal indictments.

• munk-a 7y ago
  The FTC has the ability to recommend charges and often will name and shame involved parties - additionally the FTC could extend the liability for these fines to the backers of CA if they chose to and that'd honestly send a ridiculously strong message - investing in something this shady should really break out of the standard liability agreements of a corporation and extend to personal assets. If the investors behind CA were aware of the shady business CA was trying to do (and all signs point strongly to yes in this case) then they conspired. If they conspired they should be prosecuted accordingly and this seems like a good and easy charge to press.
  • anigbrowl 7y ago
    Id' be interested in some examples of past recommendations from the FTC that lead to indictments or at least investigations.
  • lvs 7y ago
    They could potentially refer, but they would at best be referring for further investigation since many of the investigative tools necessary to pursue individual criminal indictments are not available to them. The FTC is limited to administrative powers and can take civil actions -- that's it. As far as going after investors for fines, I've never heard of such an attempt by the FTC against backers of an LLC, and I suspect that would be tied up in courts and legally inviable. It's nice to fantasize about regulators making these kinds of smackdowns, but their real world powers are quite limited by statute and case law.