Papantonio: JOBS Act Paves Way For Massive Corporate Fraud

[GoLeft TV]

Recently, President Obama signed the abomination of a bill known as the JOBS Act into law. The Act is supposed to help small business owners have access to capital to expand or start their businesses and stimulate the economy. But, thanks to Republican meddling, almost all oversight and regulatory statutes were removed from the Act before it was signed into law, leaving the door wide open for financial fraud. Mike Papantonio talks about what we might expect as a result of this JOBS Act with attorney James Kauffman who specializes in financial fraud litigation.

[dreampunk]

1. GoLeft TV 0. Papantonio: JOBS Act

many of us watched from the beginning as President Obama picked those from global industries and investment banking to be his closest advisors and shook our heads. But we may have thought "oh well, Obama's SMART, I am sure he has a plan." To me it is looking more and more like the plan is becoming clear. President Obama is either beholden to or planning a future with the munitions/banking/oil/wall street crew, or truly is not as smart as we gave him credit for. The pictures of him paling around with the Bushes and Clinton as Jimmy Carter kept his distance from them told a lot....

[miamipilot]

2. This is One Case I Happen to Disagree with Papantonio

I have followed this Jobs Act bill since its inception. I consider myself an expert on this as well as a political progressive in small business capital formation. I really don't think Papantonio (and many others for that matter) completely understand all of its intended provisions. This may be due to the fact that Papantonio doesn’t practice security law (highly specialized area of the law). The fact of the matter there are clear anti-fraud provisions already in place for protections. These anti-fraud provisions provide numerous stop guards and impose heavy sanctions in civil courts in favor of investors who are defrauded. Furthermore, the SEC is not done with this bill quite yet, and they will have wide discretion to institute their appropriate protections before this bill actually becomes law.

Here’s What the Bill Really Does….

It lifts some of the burdensome audited accounting requirements which are simply too costly for small businesses at this stage of their development when raising capital. Everyone wants those protections in place (including business owners)..... although do we do it at the expense of not creating any Jobs? This clearly is a step in the right direction and I believe time will prove that we have found a proper balance between transparency and investor protection at least as it relates to small business.

Furthermore, it should be noted one provision of the bill calls for creating an exemption for “equity-based crowdfunders." This is our single best hope to level the playing field with the Wall Street cronies and it represents our single best hope to take on the Wall Street power structure that keeps us all poor by deflating the currency. Prior to this bill their was an outdated legal & regulatory environment in place that had been custom made for fortune 1,000 companies leaving our small businesses out to dry.

Mike, with all due respect… I really think you need to go back and do your homework on this one.

Check out this video discussing what Crowdfunding is all about...

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[dreampunk]

3. miamipilot, thank you

from a 65 year old who never did take college seriously. I am new here at the forums of DU, and assumed (I know ass/you/me, etc.) that what I was seeing was true thru and thru. While not able to actually ingest all that the vid you offer, I CAN understand what you have written and thank you for clearing that up and showing a life-long Democrat a bit of how the real world operates. Reminds me of a couple of old sayings: QUESTION AUTHORITY and TRUST BUT VERIFY.