Crowdfunding solicitors have become the target of the Nevada Secretary of State. Crowdfunding is generally defined as a method of financing or funding a project with relatively small contributions from a large group of individuals. Crowdfunding is often conducted online through dedicated Crowdfunding sites. In April 2012, the Crowdfund Act was signed into Federal Law as part of the JOBS Act. However, the Securities and Exchange Commission has not yet passed regulations governing Crowdfunding. Consequently, in Nevada Crowdfunding methods are a prohibited form fundraising by persons issuing or selling unregistered securities.
Nevada Secretary of State Ross Miller stated until the Securities and Exchange Commission’s promulgates regulations, Crowdfunding in the State of Nevada is prohibited.
All investors should learn the warning signs of investment fraud and independently verify any investment opportunity as well as the principles or company offering the investment. Investors may inquire with the Nevada Securities Division who can provide detailed background information regarding licensed individuals who sell securities or give investment advice in the state of Nevada.
The Nevada Securities Division can also supply information and verify the registration of any product being sold or offered state of Nevada. As always, investors should only do business with licensed brokers, investment advisors and issuers in compliance with Nevada and federal laws. The Nevada Securities Division telephone number is 702-486-2440.