b'How to Legally Raise Private Moneyin a timely manner, the issuer may be disqualified from claiming the ex-emption, regardless of whether the documents comply with disclosure requirements or even if the issuer has followed the rest of the rules for the appropriate exemption. Regulators have the ability to overlook technical violations, but there is no way to guarantee that they will, and they are not likely to do so if other violations are found. Many non-attorneys and real estate attorneys who are not versed in securities laws draft their securities or corporate documents and fail to comply with this required step. I am constantly amazed at the number of real estate attorneys I talk to who say, Oh, my clients just do limited partnerships, or long-time issuers who say, We just sell LLC interests. As if that were all that wasneededtocomplywithsecuritieslaws.Sadly, they are mistaken. In such instances, the safe harbor doesnt exist, and such people are at risk for regulatory investigation and enforcement actions at the state or federal level for the duration of the investment. Consequences for Filing FailuresMany states simply will not allow late filings, or they may charge hefty late filing fees. If the issuer fails to file the state notice within the required timeframe, there may not be an opportunity to fix it later. The offering could be at risk for its entire duration. If something goes wrong and an investor complains, or if the state learns of the sale of securities within its jurisdiction without the required notice filing, it could elect to inves-tigate the issuer for violating state securities laws. If the issuer has failed to comply with the rules of the exemption for a federal offering, the issuer likely will be in violation of the states exemption from registration of the offering at the state level. As a matter of public policy, the securities violations are not something for which a company can indemnify the issuer. The individuals who vio-lated the law will have to bear the costs of defending a securities violation themselves. Once the door is opened for the state or federal government, or a private civil attorney representing a disgruntled investor, to scruti-144'