SEC's 1st Crowdfunding Enforcement Turns Heat On Portals

By Tom Zanki (September 24, 2021, 9:40 PM EDT) -- The U.S. Securities and Exchange Commission's decision to target a crowdfunding portal in its first enforcement action involving such capital campaigns sends a strong signal that regulators expect intermediaries to thoroughly vet these fundraising efforts or face repercussions, attorneys said.

The SEC on Sept. 20 alleged two cannabis-related companies, 420 Real Estate LLC and defunct TransAtlantic Real Estate LLC, bilked investors after raising money in separate campaigns for projects that never materialized. Instead, company principals pocketed the proceeds for personal use, the agency said.

Regulators also sued the operator of a funding portal used in both campaigns, TruCrowd Inc., for allegedly...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!