Offshore Paid Surfs/HYIP's NOT Exempt from SEC Regulations

http://www.i3institute.com/

i3's research has uncovered some information that will be of vital importance to individuals participating in paid surf and HYIP programs that claim to be operating legally as offshore companies. The US Securities and Exchange issued a legal interpretation in 1998 which makes it clear that investment offerings made via the internet by foreign issuers ARE subject to SEC regulations if they target or permit their offer to the extended to US citizens. There are also a number of other key statements in this interpretation which put these sites, their investors, their promoters, and related third parties at risk for SEC sanctions and civil and/or criminal charges.

We have posted the entire interpretation below for your convenience and have highlighted key points. You can view the full interpretation on the SEC's website here .

In short, here is paraphrase of the major points you need to be aware of:

1. If a foreign/offshore company offers investment opportunities via the internet without taking reasonable efforts to insure that US citizens do NOT have access to their offering, they are NOT exempt from registering that offering in the US. Thus, if the company is indeed to be found to be offering an unregistered security, they will be under the jurisdiction of the US SEC, regardless of their offshore status.

2. By 'reasonable' efforts, the SEC expects the site to take the following such measures, 1)a disclaimer on the site stating it prohibits US citizen participation, 2)requiring potential participants to provide proof of non-US citizenship before being allowed to invest, 3)putting into place technological measures that will prevent non-US surfers from viewing the website, etc.

3. Sites that blatantly market their offering as one that helps US citizens avoid US regulations, taxes, etc. are NOT exempt from SEC regulations.

4. Sites that committing any kind of investment fraud (i.e. operating a ponzi in guise of an investment or business opportunity) are NOT exempt from SEC regulations.

5. If sites allow their offering to be marketed, advertised, or promoted by third party websites (monitoring sites, forums, promotional sites, etc.) that do not prohibit US users, they are NOT exempt from SEC regulations.

6. Individuals and companies brokering (referring) US citizens to or promoting such sites are subject to the same SEC sanctions as that of the company making the offering.

7. US-based companies or individuals that offer foreign investment opportunities that are available to US citizens could be seen as deliberately attempting to circumvent US regulations and this are held to even MORE strict regulations than companies that are physically located offshore.

The basic thing to be aware of with this interpretation is that paid surf and HYIP programs out there promoting themselves as being exempt from US Securities & Exchange Commission regulations due to the fact that they are located or have incorporated offshore, are not telling you the full truth. Not only are they are risk for SEC shutdown, if you are promoting these sites and collecting referral commissions, you could be personally at risk for those same sanctions. If you feel that you might be participating in such a program, we suggest that you read the interpretation below as well as consult an attorney or the SEC regarding the program.
_________________________
The only thing necessary for evil to triumph is good men to do nothing