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>> Wealth tests Apparently, you can lie: http://www.quora.com/How-do-you-become-an-accredited-investor http://www.quora.com/How-do-you-become-an-accredited-inv

• JumpCrisscross 13y ago
  That constitutes fraud. If the SEC found out the company would get fined and the individual potential fines, asset forfeitures, and even jail time.
  • oijaf888 13y ago
    Has any individual ever been charged with fraud for misrepresenting their wealth? I understand its likely that the company faces fines and such, but I've never heard of an individual getting in trouble.
  • gojomo 13y ago
    I doubt simply "finding out" would guarantee enforcement. They'd need time and an inclination to care, and tangible evidence. If there was no crime by the issuer other than being a little too trustworthy, it's unclear what the prioritization and penalties would be. I suspect the bigger risk is that the buyer – the not-really-'accredited' – has some dispute with the company and sues, causing problems because the various assumptions-of-competence (that come with 'accredited' status) are then voided. It gives a bad-faith or disgruntled investor more leverage over the issuer.
  • kevinpet 13y ago
    Well, the company could certainly be in hot water for selling to a non-accredited investor, but I've yet to see anyone who can point to a penalty that can be levied against the lying investor.