[meteorite-list] Meteorite-list Digest, Vol 65, Issue 45

From: Michael Gilmer <michael_w_gilmer_at_meteoritecentral.com>
Date: Thu, 19 Feb 2009 14:42:08 -0800 (PST)
Message-ID: <623946.39625.qm_at_web58402.mail.re3.yahoo.com>

Hi Elton,

That does make sense when you put it that way. I had no idea.
So it's OK to chat about the investment value of meteorites and
tell other people about them, but you can't promote or sell a
meteorite as an "investment" unless you are willing to play ball
with the system. Understood. :)

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
..........................................................

Message: 8
Date: Thu, 19 Feb 2009 11:33:30 -0800 (PST)
From: Mr EMan <mstreman53 at yahoo.com>
Subject: Re: [meteorite-list] Meteorites, investments and the law
To: meteorite-list at meteoritecentral.com, michael_w_gilmer at yahoo.com
Message-ID: <165099.15083.qm at web55207.mail.re4.yahoo.com>
Content-Type: text/plain; charset=us-ascii


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



      
Received on Thu 19 Feb 2009 05:42:08 PM PST