Ethics & Legal

What ethical/legal red flags should I watch out for?

● Unregistered “brokers” taking fees from investors without proper licensing.
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● General solicitation into a 506(b) round (can jeopardize the exemption).

● Pressure to skip filings (e.g., Form D) or weak disclosures.

● Conflicts of interest not disclosed (e.g., related‑party deals).

● Too‑good‑to‑be‑true promises or guaranteed returns.


Verify which exemption a company uses, look up required filings, and avoid deals that won’t follow basic compliance.

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