Illegitimate basementsBy http://profile.typepad.com/1237764140s22740 // December 6, 2012 in Crowdfunding
There's a subtle but outrageous assumption in the latest scare-o-gram from the North American Securities Administrators Association.
The organization of state regulators yesterday put out another press release warning of impending fraud via crowdfunding. This time, we're told impending fraud may be inferred from the proliferation of registered domain names that include the word "crowdfunding."
“'Many of these sites appear to have been formed by large credible organizations while others appear to be created by individuals that may be operating out of their basements,' said Robert Moilanen, Minnesota Securities Director and chair of the North American Securities Administrators Association’s Internet Fraud Investigations Project Group. 'The pure volume suggests that the wave is about to overtake the dam.'”
I'm sorry, but just because someone works out of a basement doesn't make her illegitimate.
She may be working on organizing her community. She may be looking to set up ways for normal people to invest locally and not send all their investment dollars to "legitimate" firms on Wall Street, firms that will funnel those dollars to huge public companies that don't put the same emphasis on local or regional economies.
Photo: Ben Brophy / Flickr.