b'with its intra-state rules (which it likely would not), or that someone acted as an unlicensed broker, it could deny the intra-state exemption, make a determination that the offering violated intrastate state and/or federal rules, and prosecute. Civil Lawsuits Section29oftheExchangeActprovidesthatacontractmadein violation of the 1934 Act is void as regards the rights of any person who enteredintoorperformedthecontractinviolationofthe1934Act- meaning that if the finders activities were in violation of the 1934 Act, the issuercouldavoidpayingthefinder.Further,thisprovisiongivesan investor the right to file a civil action to render the contract void (i.e., seek rescission). Many state securities acts also specifically authorize rescission in such cases.The statute of limitation for securities violations (i.e., the time period in which an action must be brought) doesnt begin to run until the violation is discovered, which could be many years after the securities were originally sold,andyearsintoadeal.Wherearightofrescissionisupheld,the company may be required to return all of the investors original investment plus interest within a specific time frame (which could be as little as 30 days),anddoingsomaystillnotbesufficienttoprecludefurther prosecution. How Are Violations Discovered? Private securities offerings are generally self-policing, in that there is little likelihood that anyone will audit your offering for securities violations 249'