Miami Private Placements Securities Attorney

A Private Placement (or non-public offering) is the selling of securities which are sold not through a public offering and are not sold on any exchange, but rather through a private offering, mostly to a small number of investors.

Private placement securities do not have to be registered with the Securities and Exchange Commission if the issuance of the securities conforms to an exemption from registrations as set forth in the Securities Act of 1933 and SEC rules promulgated thereunder. Most private placements are offered under the Rules known as Regulation D.

Common exemptions from the Securities Act of 1933 allow an unlimited number of accredited investors to purchase securities in an offering. Generally, accredited investors are those with a net worth in excess of $1 million or annual income exceeding $200,000 or $300,000 combined with a spouse. Under these exemptions, no more than 35 non-accredited investors may participate in a private placement. In most cases, all investors must have sufficient financial knowledge and experience to be capable of evaluating the risks and merits of investing in a company.

Private placement securities are often highly risky and pay an over-sized commission to the financial advisor or broker selling them. In many instances, proper vetting and due diligence is not performed by the broker-dealer prior to selling private placements to its customers.

Carlson & Associates, P.A. has experience in handling cases involving private placements and other Miami investment fraud.

Contact our Miami Investment Fraud Attorneys

Carlson & Associates, P.A. has years of experience helping Miami clients with investment fraud, corporate & partnership disputes, officer liability and coverage & legal and accounting malpractice. Contact us online or call 305-372-9700 for more information or assistance.