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Podcast: Syndication Law & The Private Placement Memorandum Attorney
Episode: Behind the 'Bad Actor' Rule: Rule 506d Demystified
Description: Tilden Moschetti, a securities attorney, discusses Rule 506d, a part of Regulation D, which defines "bad actors" in the context of securities offerings. These "bad actors" are individuals who are prohibited from participating in the offering of securities due to past misdeeds. Rule 506d is applicable to both Rule 506b and 506c offerings.According to Moschetti, the rule disqualifies a wide range of individuals from participating in offerings. This includes individuals with previous convictions, judgments or court orders related to securities or fraudulent conduct, within certain time frames. This also includes those who have been barred or...