Question regarding SEC Oversight on a New Biz Venture

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meezy

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My jurisdiction is: IL/Cook

I'm launching a new venture and I'd like opinion from a Securities lawyer on whether or not my business has to abide by SEC...or have SEC oversight. Some potential investors have raised this issue with us. We think our business doesn't require SEC oversight.

General Description of the Business:
Provide a service platform in which communities of people (fans) can support the growth of individuals or celebrities by investing in them. Our company guarantees that fans receive valuable perks in exchange for their investment, in addition to the opportunity to profit from a market-like environment, where the more successful a 'celebrity' is, the more opportunities are for all the parties to make a profit.

Appreciate your perspective(s). Feel free to email me at wjwfour@hotmail.com if you have any additional questions. Will be willing to share additional information uppon signature of NDA.

-Bill Walsh
 
Bill, you should consult one-on-one with a securities lawyer. There are too many subtle factual issues to be able to answer your basic question. "Oversight" by the SEC is only one aspect. Is the investment a "security"? Are you selling a security using advertising or general solicitation? Does it fall under an exemption from registration?

Even it the current structure is a problem, with good advice you may be able to make changes that bring the program within some safe harbor exemption.

Good luck.
 
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