That's one of the legal hurdles. Theoretically, being an accredited investor means that you have a lower probability of falling for a scam. Bernie Madoff sort o

That's one of the legal hurdles. Theoretically, being an accredited investor means that you have a lower probability of falling for a scam. Bernie Madoff sort of proves that wrong. There would have to be some form of financial transparency, but much more simpler than what the current standards are for public offerings. Also, scams do exist in the public markets. Throw a dart at any stock under 2 bucks and odds are you've found one.