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Old 10-29-2006, 06:10 PM
MiltonFriedman MiltonFriedman is offline
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Join Date: Feb 2006
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Default Slight problem with your angle, it violates the \'33 Securities Act

"Stock transactions are specifically exempted from the UIGEA ... We have highlighted the exemptions and exclusions that we feel make USPPINC a viable and legal operation."


This was an interesting angle, which has largely been rejected by others, because the selling of unregistered securities, i.e. stock, in the United States violates the 1933 Securities Act.

(Remember when PokerShare was dumped by Excapsa ? That was the likely reason.)

The attempt is appreciated, but needs some re-tooling.

That a "shareholder" get paid in shares from the results of his own playing looks like an attempt to make this investment NOT a security. It is a nice try. However, here is the catch highlighted ..."This is so USPPINC and you the shareholder/player <u>will profit from another shareholder/players good play</u> ."

if you buy a share and profit from someone else's efforts, you have bought a security. Aside from whether this is a good investment for a player, it is ILLEGAL to offer unregistered securities for sale in the US.

Your list of pokersite 'partners" is impressive, did they understand that your business is selling unregistered securities in the US ?

Your basic idea IS interesting, but you have not worked through all the issues.

Please get legal advice before you try again to sell shares in the US or re-structure what you are selling so that it is not a security.