Why can multiple private placements be an issue? As described in earlier articles, each of the Rules 504, 504 & 506 have various limitations, such as the limitation on the number of Non-Accredited investors. In case you cannot have over 35 Non-Accredited investors, & in your first Private Placement you had 30 & in your second Placement you had another 30, & the SEC integrated these Placements, you would have busted the Reg. D exemption & broken federal securities laws.If you conduct multiple private placements, you run the risk that the SEC will say that what you thought were multiple, separate Private Placements was giant Private Placement. The SEC integrates, or combines, the multiple Private Placements.
