ICAN advances its mission on two fronts with a compelling Ninth Circuit Court appearance in SEC v Barry et al. and files a formal challenge to outdated accredited investor rules that restrict market access.
December 16th, 2024
Dear ICAN Partners,
As we come to the end of a busy and productive year -- made possible by our network of supporters -- ICAN isn't taking our foot off the gas. We’re writing to share two significant developments showing our accelerating momentum.
Last Friday, we went before the Ninth Circuit Court of Appeals to defend Brenda, Eric, and Caleb - three sales agents who have spent eight years fighting the SEC's attempt to financially ruin them. As you’ll likely remember from our earlier write-up about the case, the SEC is demanding hundreds of thousands of dollars in monetary judgments from our clients because the company they worked for didn't register certain investment offerings - even though a prominent federal appellate court had previously ruled similar investments weren't securities. Despite never claiming these individuals committed fraud or harmed anyone (in fact, investors are expected to receive 100% of their money back), the SEC has continued its dogged pursuit for years. Our legal team, led by co-counsel Igor Timofeyev, a nationally recognized appellate specialist (and former Supreme Court and 9th Circuit clerk), made a compelling case that the SEC is overstepping its authority and cannot demand devastating monetary judgments without showing any actual harm occurred. As one of the judges commented at the hearing, "Why is it that these individuals are expected to know better … when God knows, we've spent a lot of time and read a lot of pages trying to figure out whether this is an investment contract." This case could set a crucial precedent preventing the SEC from using technical, non-fraud violations to destroy the lives of ordinary people working in good faith. The case also represents another important challenge of the SEC’s ongoing attempt to skirt higher court rulings limiting their reach. You can watch our team make the case here.
Yesterday, ICAN took another important step in our ongoing effort to expand access to capital markets. After two years of attempting to work with the SEC to modernize investment rules, and the agency refusing to engage, we have taken decisive action, filing a petition formally challenging the outdated "accredited investor" rule that blocks most Americans from private market investments simply because they don't meet arbitrary wealth and income thresholds. We're already hearing from multiple influential organizations and industry leaders who plan to file supporting briefs backing our position. This fight is about a simple principle: in a country where anyone can gamble their money away on sports betting apps, why should hard-working Americans be barred from choosing to invest in ways that could build generational wealth? You can read our petition here.
2024 has turned out to be a banner year for our young organization, and this progress would not have been possible without our amazing network. If you're interested in learning more about supporting our litigation fund or other ways to partner with ICAN, please reply to this email or contact us at info@icanlaw.org. Your involvement can help ensure that we continue building precedents that protect market freedom and opportunity for all Americans.
With appreciation,
Nick Morgan
Founder and President of ICAN
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