>
> From: Ruth Lee <rlee35@bivio.com>
> Date: 2004/05/20 Thu AM 10:23:27 EDT
> To: club_cafe@bivio.com
> Subject: club_cafe: looking for new members
>
> we are an established club in wi. 4 yrs old. looking for
> addittional members either locally or remote. contact
> rlee35@execpc.com

RuthLee

I hope you know that your Club is not permitted to advertise for new members.
The big bad SEC police will get you.

Reguards
>

Frank D. Novotny writes:
> I hope you know that your Club is not permitted to advertise for new members.
> The big bad SEC police will get you.

This is a gray area:

http://www.sec.gov/investor/pubs/invclub.htm

The following section is particularly relevant:

    How do you know if an investment club is making a public offering?

    An announcement that a club is looking for new members might be
    considered a public offering, but this is determined on a
    case-by-case basis. An attorney with experience in securities law
    can help the club determine if its membership interests are
    securities, and if the club is making a public offering of those
    securities.

It is unlikely that the SEC will go after a "true" investment club.
They have gone after people running funds which were pretending to be
investment clubs. A normal investment club membership is probably not
a security, and therefore an announcement on this message board
most likely wouldn't be considered a public offering.

Cheers,
Rob Nagler
bivio Inc.

Disclaimer: statements are opinions expressed by bivio Customer
Support and are not official statements from the IRS or the SEC.
These statements are not intended to replace professional legal
advice. When in doubt, follow the advice of your local legal advisor
who is familiar with your particular circumstances.