JF3398: The 3 Most Common SEC Violations Syndicators Commit ft. Mauricio Rauld

Building Investor Relationships: Mauricio emphasizes the importance of quality interactions over time in order to protect yourself against relationship-based SEC violations. He clarifies that the SEC doesn't have a specific timeframe but looks for the depth of the relationship. A three-day field trip with meaningful conversations can be more effective in establishing a substantial relationship than a year of one-sided communication through newsletters or social media.

Corporate Transparency Act (CTA): Mauricio highlights the upcoming CTA, set to take effect in 2024. This act requires individuals with ownership or control of entities to provide personal information, including home addresses and driver's license details, to combat money laundering and tax evasion. Failure to comply with the CTA can result in substantial penalties, making it crucial for investors to stay informed and ensure compliance.

Common SEC Pitfalls: Mauricio highlights the three most common violations syndicators commit, which include not realizing they are selling a security, getting compensated to raise capital for sponsors, and promoting a deal on social media.