Key point 9-04. Federal and state laws regulate the offer and sale of securities for the protection of the investing public. In general, an organization that issues securities must register the securities, and the persons who will be selling the securities, with state and federal agencies. In addition, federal and state laws contain a broad prohibition on fraudulent activities in the sale of securities. Churches are exempt from some of these requirements in some states. However, they remain subject to the prohibition of securities fraud in all 50 states, and under federal law.
A federal court in Maine found that a promoter of Christian concerts had violated federal securities laws as a result of his offer and sale of unregistered securities and fraudulent statements made to prospective investors.
Ministry seeks investors to repay debt
A Christian ministry (the “defendant”) promoted, ...