- Teleseminar On Non-Performing Notes TOMORROW + Are Notes Securities?
Published: Wed, 07/17/13
Hi ,
Don't forget that you're invited to a free teleseminar on
non-performing notes TOMORROW, Thursday with Gordon Moss.
Gordon is THE #1 expert on profiting from non-performing
second liens. He'll give you ideas on how to find them,
what to watch out for, and how to buy them for pennies on
the dollar -- and will answer your questions live.
The free teleseminar will start TOMORROW at:
6:00 p.m. Pacific
7:00 p.m. Mountain
8:00 p.m. Central
9:00 p.m. Eastern
(all times DST)
Call 712-451-6000 when it starts in your time zone. When prompted,
enter the access code 903809 followed by the # button.
(Sorry, you cannot use Magic Jack.)
E-mail your questions to me: wjm@PaperSourceOnline.com either
before or during the teleseminar.
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
P.S. Our live class "Profits In Non-Performing Notes:
Turning NPNs Into Cash Cows" is Sept. 27-28 in Las Vegas.
Two days, two expert teachers (Gordon Moss on NPN 2nds,
Jack Krupey on NPN 1sts). Get $200 off if you register
now -- this offer expires midnight Wed. July 31!
www.PaperSourceSeminars.com or 1-800-542-2270.
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"Notes Are Securities" Says Regulator...
"Dead Wrong" Says Securities Attorney
by W. J. Mencarow www.PaperSourceOnline.com
There's a letter going around again that's scaring note investors
and brokers.
It is dated Nov. 8, 2006 and signed by Wayne Klein, then
the Director of the Securities Division of the Utah Dept.
of Commerce. He is responding to Lorelei Stevens who
asked if Utah requires note brokers to be licensed.
Klein claims that "notes are securities" and therefore "in most
cases" selling and brokering them without licensure is a felony and
that he "expect(s) that the same or similar answers would be given
by other states or the SEC."
I am amazed that the head of a state securities department could be
so misinformed. Because the letter is being circulated again, I
asked a friend for his comments. He is a prominent securities
attorney, a member of the ABA Business Law Section. Here is
his letter:
Bill,
The Letter (from the Utah Securities regulator) paints with
too-broad a brush. Any 1st year securities lawyer could poke holes
in the arguments:
1. (He writes) "Because many of these notes are offered publicly
on web sites or other networks, it is deemed a public offering of
the securities and few exemptions are available."
Dead Wrong. The existing Regulation A, Rule 504 of Regulation D,
the 2012 JOBS Act allowing crowdfunding (although the letter
was written before the JOBS Act).
2. (He writes) "If notes are securities, anyone selling notes must
be licensed as a broker-dealer or an agent. In fact, the law
requires a license before securities can even be offered,
whether or not securities are sold."
Dead Wrong.
Issuers are not BDs or agents.
3. (He writes) "Whenever securities are offered or sold, the law
requires the seller to give complete disclosure about the
securities, the broker, and the seller."
Dead Wrong.
Disclosure rules do not apply to accredited investors:
§ 230.502(b) of Reg. D: Information requirements
--(1) When information must be furnished. If the
issuer sells securities under § 230.505 or §
230.506 to any purchaser that is not an accredited
investor, the issuer shall furnish the information
specified in paragraph (b)(2) of this section to
such purchaser a reasonable time prior to sale.
The issuer is not required to furnish the specified
information to purchasers when it sells securities
under § 230.504, or to any accredited investor.
(He writes) "Conclusion: I expect that the same or similar
answers would be given by other states or the SEC."
Wrong. I seriously doubt that a person who works and is
expert in this industry would give such cavalier and
generalized statements that are misleading.
There are other problems with the letter, but why
waste further time. It is true that an enormous amount of
wrongdoing and fraud is perpetrated in the unregistered
securities market, and state governments are ill-equipped
to try to address all of it, let alone stop it. We have seen
over the past 10 years how the SEC has abjectly failed to
police wrong-doing on a grand scale. Wherever there is
money, there are people trying to part it from their owners, often
by breaking the rules. It is a shame that this person supposedly
serving the public interest, at taxpayer expense, is so eager to
throw the baby out with the bath water."
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DON'T MISS THE DEADLINE!
"Profits In Non-Performing Notes: Turning NPNs Into Cash Cows" is
Sept. 27-28 in Las Vegas.
Two days, two expert teachers (Gordon Moss on NPN 2nds,
Jack Krupey on NPN 1sts).
Get $200 off if you register now -- this offer expires midnight
Wed. July 31!
See the videos and hear the teleseminars at
www.PaperSourceSeminars.com or 1-800-542-2270.