Gregory White, Mark Katzoff and Angelo Paparelli authored an article entitled "Avoiding the Inadvertent Investment Company" in EB5 Investors Magazine on what it takes to be dubbed an "investment company" under the Investment Company Act of 1940, and includes an overview of some of the common methods for avoiding inadvertent status as an investment company. The article also describes the unpleasant potential consequences of inadvertently being tagged as an investment company, including possible rescission, ineligibility to satisfy the EB-5 "at risk" capital rules and a duty to register as an investment advisor.
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