[meteorite-list] Meteorites, investments and the law

From: Mr EMan <mstreman53_at_meteoritecentral.com>
Date: Thu, 19 Feb 2009 11:33:30 -0800 (PST)
Message-ID: <165099.15083.qm_at_web55207.mail.re4.yahoo.com>

Dear Mike--
Short Answer: Routine commercial sales aren't regulated so long as you do not hold them out as a security or investment.

If you publish or utter the term "investment"-- which has a specific legal meaning, to market your meteorite wares then your business activity is eligible for review and regulation by the Securities and Exchange Commission (SEC). AND yes they can put a microscope up your butt in perpetuity and bankrupt you with attorney fees and fines for as you should know ignorance of the law is no defense.

Long Answer:
Most financial objects and those involving more than 5 entities are regulated. Notes, Coins, Money and IOUs are among the few which aren't directly regulated...use the term "investment" to sell any one of them and you are now obligated to meat all the legal filing and disclosures under state and federal security laws. There is yet another oxymoron "securities" which will get you in trouble with the SEC.

If a customer wished to recoup his loses because he can't sell the stuff for what he paid for it. He goes to the SEC hotline and claims you told him it so much as "could be" an investment and you are presumed to be in criminal and civil violation of various financial laws and a part of your settlement will be making your customer "whole". If you market investments you have to provide on demand a prospectus which meets all the SEC disclosure requirements and you have to register with state and federal regulators depending on your category.

So if you want to pick a fight with "Big Gvn'munt", by all means use the term investment--especially after Matlof's big Ponzi fraud. It isn't a free speech issue because it is one of those greater good provisions which allows certain activities and financial objects to be regulated.

The Federal Trade Commission governs yet another facet of commerce such as truth in jewelry components and quality obligations to disclose accurately, etc.

Elton


--- On Thu, 2/19/09, Michael Gilmer <michael_w_gilmer at yahoo.com> wrote:

> From: Michael Gilmer <michael_w_gilmer at yahoo.com>
> Subject: [meteorite-list] Meteorites, investments and the law
> To: meteorite-list at meteoritecentral.com
> Date: Thursday, February 19, 2009, 10:21 AM
> Hi listees!
>
> In a recent post, Steve Arnold #1 said :
>
> "While it is against the S.E.C. and F.T.C. laws to
> represent (or even
> mention) meteorites as "investments" rather than
> "collectibles,"..."
>
> Is this true? And if so, why on Earth is it true?
>
> Does this mean I cannot relate to others how much money I
> have
> made off my meteorites? For example, I bought a meteorite
> during
> my first weeks in the hobby (almost 2 years ago) for about
> $5.
> It was part of a larger lot, but the individual cost worked
> out
> to $5. I just sold that same meteorite for $250. So, is
> it
> against the law for me to state that my meteorite was a
> good
> investment? I cannot relate the truth of a personal
> experience
> to another person, because that is breaking the law? What
> next?
> I cannot tell people I clipped a coupon from the paper and
> saved
> money at the grocery store? Am I breaking the law by
> asking
> these questions? Are jackbooted, ski-masked,
> badge-wearing, thugs
> on the way to my house right now?
>
> If this is true, someone please tell me when we starting
> living
> in Soviet Russia and free speech went out the window?
>
> Regards and clear skies,
>
> MikeG
>
>
> .........................................................
> Michael Gilmer (Louisiana, USA)
> Member of the Meteoritical Society.
> Member of the Bayou Region Stargazers Network.
> Websites - http://www.galactic-stone.com and
> http://www.glassthrower.com
> ..........................................................
>
>
>
>
>
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Received on Thu 19 Feb 2009 02:33:30 PM PST