Securities and Exchange Commission v. Ishopnomarkup.com, Inc.
United States District Court for the Eastern District of New York
2007 U.S. Dist. LEXIS 70684 (E.D.N.Y. 2007)
Relevant factsFree
Ishopnomarkup.com (defendant) offered stock only to investors who affirmed they met accreditation requirements, relied on counsel's advice that the offering was exempt from registration, but failed to provide unaccredited investors an audited balance sheet as Rule 502(b)(2) required; the SEC (plaintiff) sued for a Securities Act Section 5 violation and moved for partial summary judgment.
IssueFree
Whether, under SEC Rule 508, a defendant's good-faith attempt to comply with securities registration requirements may excuse an insignificant mistake.