Yes, there's a few that get caught, and a whole lot more that don't. Just the way it is. Having visited with Texas regulators in the past, my opinion is that 504 violations are very low on their radar. Hence the ease of moving stock undetected is very attractive in that kind of environment. Ditto Minnesota.
My main point is that most people have the mistaken notion that 504 stock is strictly restricted for a year (for a non-reporting company), or 6 months (for a fully reporting company), and cannot trade. That may not be the case, especially if the offering is conducted in Texas.
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