Jason Goldberg, founder of aggregation service Socialmedian — and the controversial former CEO of Jobster — set off a bit of a hand grenade via Twitter today, when he posted a message saying that his company was looking to raise some money. The full text of his message (which he later deleted, but which is still available on FriendFeed) was:
“socialmedian is raising some more angel investment now. $25k-$100/investor, up to $500k. Interested parties can contact me directly.â€
Within minutes, the eagle-eyed Michael Arrington — a former securities lawyer specializing in IPOs, and therefore intimately familiar with the rules — had put up a post on TechCrunch about the message, saying Goldberg was effectively soliciting investment without filing a registration statement and issuing a prospectus, something that is prohibited by the Securities Act (specifically, Section 5). As Mike points out:
