Section 5:31 of the treatise concerning crowdfunding, cites a Note by Patrick, who served as the Executive Editor of the Suffolk University Law Review this past academic year. Patrick’s Note was recently featured in SULR Vol. 49 (2016) and defends SEC crowdfunding rules regulating funding portals.
The treatise quotes Patrick’s piece as supporting two propositions: (1) the screening function the SEC imposes upon intermediaries (i.e. funding portals) is vital to protecting the unsophisticated investor; and (2) funding portals and issuers’ opportunities to self-deal are mitigated by the SEC’s requirement that third-party banks hold funds raised via funding portals in escrow until a target amount is met.