Using Finders to Assist in Financings Can Impose Significant Risks
Insights: The Corporate & Securities Law Advisor
6/2011
Steve Ganis, Jeremy D. Glaser and Jake Romero
"Many entrepreneurs are willing to pay a finder a share of the proceeds received from an investor found by the finder. Finders often seek a portion of any capital they raise. But both sides should tread carefully in structuring such arrangements because of the significant business, regulatory and litigation risks related to the broker-dealer registration requirements."
In this article, "Using Finders to Assist in Financings Can Impose Significant Risks," published in the June 2011 edition of Insights: The Corporate & Securities Law Advisor, Mintz Levin attorneys Steve Genis, Jeremy D. Glaser and Jake Romero discuss the purpose and many risks of engaging an unregistered broker-dealer.
Click here to read the article in full.
