Is the JOBS Act a Snake Pit for Investors?
April 11, 2012
Michael W. Stocker believes that the JOBS Act could create a breeding ground for miscalculation, fraud, angry investors, and bankrupt startups
On paper, these crowdfunding and on-ramp provisions look great. In practice, analysts like former NY Governor Eliot Spitzer, and Michael Stocker of Labaton Sucharow feel that the Act could create a breeding ground for miscalculation, fraud, angry investors, and bankrupt startups. Without Sarbanes-Oxely compliance requirements and no external auditor verifying their statements, investors cannot ensure that the numbers they are given are accurate or trustworthy.