LLCs, Private Stocks, and non-investors reading material...

[Ghetalion]

I live in California. What happens when an LLC offers private stock for people of certain qualifications and dispatches an investor's pamphlet to inform the authorized potential investor about the company and a non-authorized non-investor reads it? Is the non-investor in potential trouble or is the investor in trouble? And if so, can it lead to civil suits or just arbitration?

 

[Jeter]

It is not a crime to read a prospectus/ Investor information. Even inside information is not in and of itself criminal unless it is used to influence the purchase or sale of an investment. Information contained in a private stock investor pamphlet is not the same as inside informaton, as that would be illegal under SEC mandate.