Paychest Inc (PYCT)

[PRmaniac]

dcjr - false

companies issue unregistered shares all the time, relying on an exception to the rules requiring registration.

The SEC is going after more companies that falsely relied on such exemptions from registration, though.

Regulation D, Rule 506 of the Securities Act of 1933 is one exemption rule, exempting from registration certain securities marketed through private offerings.

Since implementation of this preemption, scammers nationwide have gravitated to this type offering because it
presents the appearance of legitimacy while not requiring documentation or other details of the offerings to come under
the direct scrutiny of regulators. The exemption has been used successfully by scam artists to steal millions of dollars
from investors through false and misleading representations.