b'How to Legally Raise Private Moneyon Craigslist, and for borrowing money from just three private lenders in that state.There are four kinds of people who dont follow securities laws when raising private money, as shown in the graphic on the previous page. Which one are you? Hopefully you are not in one of those four categories. Hopefully you are reading this book so you dont inadvertently become one. If you are in one of those categories, there is always time for reform until you get caught. Then its too late, because once a formal investigation starts, it will be-come public record and your reputation will be forever tarnished. If you receive a cease and desist or other regulatory order, you could be preclud-ed from ever using certain exemptions to raise money from private inves-tors again. If you meet people who are repeatedly borrowing money with a simple promissory notewith no disclosure document, no specific exemption, and no filingsyou should wonder, which of those categories apply to them? Entrepreneurs who doesnt follow securities laws put themselves and their investors funds at risk. From an investors perspective, someone who violates securities laws has already proven himself or herself an out-law, either from ignorance, carelessness, or denial. It would not be a smart business decision to invest with someone who is already breaking the law. Additionally, whose money is likely to pay for a violators defense if that person does get caught? Investor funds, of course. This is why its import-ant for investors to learn about securities laws and what to look for before they invest. As an investor, you need to steer clear of violators when deciding how to invest your hard-earned dollars. Investors can take steps to protect themselves. One method is to review the investor information bulletins posted on the SEC and state regulators websites. Another means is to consider investing through a reputable crowdfund-ing platform or an SEC-licensed portal. Most of them have rigid issuer vetting programs, though you should always verify this, too, as some of them dont follow securities laws either. If you are unsure whether an in-vestment is legal, make a call to your securities regulator or have a securi-40'