Consumer Law, Warranties Accredited Investor

[peltdude]

My jurisdiction is: Indiana

I recently invested in a new company. They asked me to sign a paper to confirm that I am accredited. I did that but I may not have been fully truthfull. I did not meet the requirements of income over the $300,000.00 - 1 Million, if I wanted to invest in them for less than $25,000.00 All I had was $15,000.00 so I stated that I had more assets than I actualy had. What kind of trouble can I get into and can this hurt the company I invested in?

 

[dee_dub]

You may be in breach of some Securities Act provisions. You also lied to the company, which misrepresentation may give them grounds to terminate your agreement.

As far as the company is concerned, it is probably also in breach of some Securities Act provisions. It is likely prohibited by the Act from selling the securities it sold to you to non-accredited investors. I imagine it would be subject to some penalty. The fact that it took reasonable precautions to ensure you were accredited may mitigate things.