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Hey Craig,</div>
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I am not a securities expert but have done a fair amount of this over the years. If you are up to it, take a look at this from the Washington State DFI website. There is an exception for accredited investors. I always make the investor fill out a form acceptable
to the securities regulators where the investor lays out net worth and positive assertion about them qualifying as an accredited investor.</div>
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<a href="https://dfi.wa.gov/securities-registration" id="OWA29d9118c-8d8c-4847-24f4-ecd3e4af1cb4" class="OWAAutoLink">https://dfi.wa.gov/securities-registration</a></div>
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I would love to hear from any of the securities practitioners on this listserv about Craig's question.</div>
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Sincerely,</div>
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Tom</div>
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Thomas J. Westbrook</div>
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Attorney at Law</div>
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<div dir="ltr" id="divRplyFwdMsg"><span style="font-family: Calibri, sans-serif; font-size: 11pt; color: rgb(0, 0, 0);"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> on behalf of Robert Pampell <rpampell@swcp.com><br>
<b>Sent:</b> Wednesday, February 5, 2025 9:51 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBARP] Securities question</span>
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<div style="direction: ltr;">Craig,</div>
<div style="direction: ltr;">Yes, corporate stock is always a security under federal law and, I believe, Washington law as well. There are exemptions from the registration requirements, although not from the anti-fraud, i.e. disclosure requirements.</div>
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<div style="direction: ltr;">So your cautionary approach is well-founded.</div>
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<div style="direction: ltr;">Bob Pampell </div>
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<div style="font-size:11pt" id="x_divRplyFwdMsg"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> on behalf of Craig Gourley <craig@glgmail.com><br>
<b>Sent:</b> Wednesday, February 5, 2025 7:31:14 AM<br>
<b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBARP] Securities question<br>
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<p style="margin: 0in; font-family: Aptos, sans-serif; font-size: 11pt;">Listmates, we have a client with an existing ( I believe new) corporation that wants to bring in another person. This person would “ buy in” with a contribution to capital. I am
not a securities guy but my intuition says this is a securities transaction and full of liability for both the client and the attorney that facilitates this. Thoughts? Thanks, Craig</p>
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<p style="margin: 0in; font-family: Aptos, sans-serif; font-size: 11pt;"><span style="font-family: Calibri, sans-serif;"><b>GOURLEY LAW GROUP</b></span></p>
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