With interest growing in raising capital through private placements under the JOBS – Jumpstart Our Business Startups – Act, the Securities and Exchange Commission has warned companies against using ploys to avoid registration requirements. Among other things, the JOBS Act expanded the availability of using Regulation D under the Securities Act of 1933 to raise funds without registering an offering, but the SEC will sanction issuers for gaming the exemptions under Reg D and the Securities Act by selling to too many non-accredited investors. One issuer that received SEC scrutiny is the Scuderi Group, Inc., a family-run development-stage company formed in 2002 to develop an internal combustion engine with lower fuel consumption and pollution emissions, and to patent and license its technology to automobile and engine makers. The Massachusetts-based private company has not generated any revenue since its inception, the SEC said. Without an admission or denial of its findings, the
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