b'rightexperiencetheircontactsarelookingfor,oryourbusinessmodel doesnt fit theirs. I have yet to have a client be successful with this model.A better model would be to pay the consultant when someone investsbut if you follow this model with a consultant, make sure their introductions conform to the finders limitations discussed in this Chapter, such as the Paul Anka No-Action Letter.Penalties for Violations Regulatory Prosecution Acting as an unlicensed broker may result in possible civil or criminal charges filed by the SEC or state securities regulators. The charge would be forviolationofSection15(a)oftheSecuritiesExchangeActof1934 (Exchange Act).The risk for a finder or capital raiser is: 1) prosecution by the SEC, 2) prosecution by one or more state securities regulators, 3) a civil suit initiated by one or more investors seeking rescission of the offering on grounds of securities violations, 4) irreparable and immediate damage to the finders reputation, even if they are deemed innocent years later after the matter is settled. The risk applies also to the issuer who hires an unlicensed broker, who may be charged with aiding and abetting violations of the 1934 Act.If a state regulator determines that an issuer improperly compensated an unregistered person for selling its securities, the state could deny the federal securities exemption and apply its own registration or exemption criteria to the securities offering. If the state determined the offering didnt comply 248'