JOBS Act Leads to First Fraud Case

In March of this year we blogged about the, then proposed, JOBS Act and how this act would eliminate important disclosures meant to protect investors from fraud. The Act lowers the regulatory hurdles for companies who are defined as emerging growth companies. The NY Times reported this week that a company named Caribbean Pacific Marketing is the first company that got its start under the JOBS Act and is being prosecuted for fraud. Here are a few bytes from the NY Times:

Wall Street Justice II: More Insanity on the Way

As if the government's hands-off approach to prosecuting Wall Street firms wasn't enough, Congress is in process of passing laws to lessen regulation for firms trying to go public so they can raise money without the usual disclosures. Guess what industry is licking their lips right now hoping this bill passes--the investment banking industry. The following is from yesterday's Washington Post: