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07-06-2016, 02:48 AM #1
Possible scam on private firm? *Help*
Hello L4P community, so a couple weeks ago i was informed about this company that is going public and if i wanted to invest into the company before they went public. I ended up doing some research and asked a lot of questions all which have been answered. Here is my problem. I invested more than 2k but less than 4k i do not want to say the exact amount nor do i want to say which company i had invested in (not sure if i am able to do so or not depending on the situation im in). The company told me they will be going public in a couple days (this was about 2 months ago) and that they will send me a certificate or proof of purchase of stocks. I have not received anything at all. Every time i ask the manager when i will receive this certificate or when it will go public he responds with "oh accounting is taking care of it, they should be out today or tomorrow" blah blah blah. Its been over 2 months now and im starting to feel that i honestly won't be receiving any certificate nor is this company ever going to go public. I signed a "subscription form" that pretty much sums how much money i am investing and how many stocks and i signed it along with putting my SS. The guy who actually messaged me about this company works for them and knows my older siblings and a couple people i am friends with but that still doesn't mean i can't get f**ked over for a couple thousand. Can anyone please steer me into the right direction? Or tell me what to do? Do companies take this long to send certificates after you invest in them before they go public? Its literally been over two months. And the company still has not gone public nor have they sent me anything. Please help, if this is something that should be privately talked about and not publicly please DM me.
07-06-2016, 02:41 PM #2Member
- Join Date
- Jun 2008
- Milwaukee, WI
I run a public company so I have some knowledge of the process. If they were in the process of going public they would be required by law to file an intent to do so. It is a complicated and long process but there are many public sites that list who has filed a preliminary prospects with the SEC to go public. That must be done before they go public, in many cases weeks or months before. If they were going public in a couple of days they should be able to provide you with a link to the preliminary prospectus and other information about their intent. I'd have to ask my attorney but I'm pretty sure they would have been in a "black out" period leading up to going public and would not have been able to sell you any stock. I suspect you were either scammed or they are simply forming a corporation, or re-incorporating, and giving you stock in a private company.
I'd give them a deadline to respond to your request for information and then file a small claims action against them to get your money back.
07-06-2016, 11:52 PM #3
Also if anyone else has any knowledge on this topic please feel free to let me know, i would like to hear from others as well.
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07-07-2016, 10:39 AM #4
Sounds like your'e getting scammed bro. But I don't know things, and hope not. Good luck with it though.I’m a hypocrite and if I weren’t I’d be a success story.