If it Walks Like a Little Duck...
Crain's New York Business
August 26, 2012
Michael W. Stocker speaks about the potential for fraud that comes with crowdfunding
Undoubtedly, crowdfunding will provide a lifeline for some worthy entrepreneurs. It also promises to separate a lot of gullible investors from their money. Last week, the North American Securities Administrators Association, a regulators group, called crowdfunding the "top new risk" in the marketplace because of the potential for fraud and the inherent danger investing in any unproven company.
"This will become the way to raise cash for half-baked ideas that blow up and leave investors holding the bag," said Michael Stocker, a lawyer who represents investors at Manhattan-based law firm Labaton Sucharow.