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Podcast: Syndication Law & The Private Placement Memorandum Attorney
Episode: The 'Friends & Family Loan Loophole' - Is It A Legal Way To Syndicate Without Actually Syndicating?
Description: Tilden Moschetti, an attorney with Moschetti Syndication Law Group, discusses a common misconception about a potential loophole in securities regulations. Some individuals believe that borrowing money from friends and family in the form of a loan for a syndication does not constitute a security, thus bypassing the regulations. Moschetti explains this is not the case, citing Reeves v. Ernst and Young, a Supreme Court case that outlined specific cases where loans are not securities. He warns that any venture where investors expect profit from passive involvement, such as syndications, is considered a security and must comply with SEC regulations.<...