Are you aware of the history of the accredited investor rules? When just anyone could invest there was too much opportunity for swindlers .. a problem that goes back the Mississippi company back in 1719.
Televangelists defrauding poor people is bad enough; we don’t need wall atreet bucket shops doing the same.
The fact that some people might get swindled is not an argument for why I shouldn't be allowed to invest my money how I see fit. Just like the the fact that somebody might sell a defective toothbrush doesn't justify forcing me to get the approval of some bureaucrat in order to buy one.
Non-accredited investors, by definition, don’t have a lot of money.
If that money is stolen from them via fraud, where does the money to fund the lawsuit come from?
What if the total potential judgement is less than the cost of the court case?
Regulations exist, in part, because legal remedies are incredibly inefficient.
By definition the people you could rightfully sue are misusing the money and likely living it large with it.
To my knowledge, the investees only need to ask you if you're an accredited investor, and tell you what that means. They don't need to actually verify that you meet the requirements. If you'ld like to invest in shady things, go right ahead.
Funny how these rules don't apply to gambling and lottery tickets.
Contrast that with small angel investments from “widows and orphans” - that money generally doesn’t end up controlled by the government.