b'How to Legally Raise Private Moneyinvolvement of certain felons and other bad actors in the use of Rule 506 safe harbor exemptions. Rule 506(d) handles this requirement and ap-plies to all Rule 506 offerings. Rule 506(d) defines covered persons and identifies disqualifying events. If a covered person experienced any of the disqualifying events during specified periods of time (up to 10 years) prior to Sept. 23, 2013, manda-tory disclosure to all investors is required. For covered persons who have experienced disqualifying events after Sept. 23, 2013, the Rule 506 exemp-tions are unavailable. A more complete description of covered persons and disqualifying events follows:Covered PersonsFor all Rule 506 offerings, the issuer must determine whether any cov-ered persons are disqualified from claiming the Rule 506 exemption. Cov-ered persons include:Individual members, officers, directors, managers, or employees of the issuer, or any person who will be involved with promotion or money-raising activities for the company, orAny investor who will acquire 20% or more of the interests in any voting class of membership interests offered to investors (deter-mined at the time of their investment). Disqualifying EventsAs an issuer, you have an obligation to inquire about the following dis-qualifying events with respect to all prospective covered persons who may participate in your offering 11 :Certain criminal convictionsCertain court injunctions and restraining ordersCertain final orders of certain state and federal regulatorsCertain SEC disciplinary ordersCertain SEC cease-and-desist ordersSuspension or expulsion from membership in a self-regulatory organization (SRO) SEC stop orders and orders 11 See Securities and Exchange Commission, Fact Sheet, Disqualification of Felons and other Bad Actors from Rule 506 Offerings, SEC Open Meeting, July 10, 2013, https://www.sec.gov/news/press/2013/2013-124-item2.htm 58'