Kennyhertz Invited to Address FastTrac NewVenture Entrepreneurs

John Kennyhertz of Kennyhertz Perry has been invited to address this season’s FastTrac® NewVenture™ entrepreneurs.  FastTrac is a program of the Ewing Marion Kauffman Foundation and brought to Kansas City by the UMKC Small Business & Technology Development Center in partnership with University of Missouri Extension.

In FastTrac NewVenture, aspiring business owners look at all aspects of their proposed companies, explore the feasibility of their business concept, and learn how to develop a viable business plan.  Participants address start-up issues such as assessing the competition, legal matters, marketing and financial management aspects of business ownership.  John will use his legal expertise to introduce the class to the basics of entity selection, first contract issues, and first employee considerations.

KMBZ Radio – Kennyhertz Interviews Entrepreneurs Jason Grill, Ryan Maybee, Rafi Chaudry, and Travis Moore

Once a month, John Kennyhertz co-hosts the “Entrepreneur KC Show” on KMBZ Business Channel 1660 AM.  This month’s show featured Ryan Maybee, co-founder and owner of J. Rieger & Co. Whiskey, as well as the historic Rieger Hotel Restaurant and Manifesto in the Crossroads District of downtown Kansas City.  The last segment features the owners and brew masters from Torn Label Brewing Company.  You can download the podcast at http://media.kmbz.com/a/101139620/entrepreneur-kc-radio-1-20-15.htm.

Kennyhertz Perry in partnership with J. Grill Media and KMBZ Radio, highlights entrepreneurs, startups, innovation and technologies that are changing lives on the Silicon Prairie and the legal issues these businesses and individual face daily. Tune in Thursdays between 1 and 2 pm on the KMBZ Business Channel 1660 AM.

If you have legal questions concerning startups and emerging business, please contact John Kennyhertz or visit us at www.kennyhertzperry.com.

Kennyhertz Perry Client Memorandum: Private Right of Action for Selling Unregistered Securities in Kansas

The Kansas Uniform Securities Act (K.S.A. 17-12a101 through 17-12a703) regulates the promotion of speculative securities to protect investors. Enforcement of the Act may be handled by the Kansas Securities Commissioner, but private actions are also authorized in certain circumstances.

A security is any proof of ownership or debt assigned a value and may be sold. Common types of securities are stocks, bonds, and options. The rules regarding “crowdfunding” as a security were relaxed after the JOBS (Jumpstart Our Business Startups) Act was passed in 2012. The JOBS Act allows everyone the ability to invest in startups, with investment caps based on one’s income.

As a general rule, it is unlawful to sell unregistered securities in Kansas. There are two exceptions to that rule:

  • The security is a federal covered security, or
  • The security, transaction, or offer is exempted from registration.

Kennyhertz Perry Client Alert: FTC v. Applied Marketing Sciences, LLC, et al. Update

In early October 2014, the Federal Trade Commission (FTC) and Defendants Applied Marketing Sciences, LLC, Standard Registration Corporation, Worldwide Information Systems, Incorporated, and Liam O. Moran stipulated to an Order for Permanent Injunction and Monetary Judgment for violations of Section 5 of the FTC Act, 15 U.S.C. §45. The Complaint charged that the defendants participated in deceptive acts or practices in the advertising, marketing, promoting, offering for sale, or selling of prize promotions.

The FTC sued because the above-named defendants were running a sweepstakes in which consumers would receive personalized mailings advising that they had won a cash prize not more than $2 million, and that they needed to pay a twenty or thirty dollar fee to collect their prize. The consumers who paid the fee, mostly individuals over the age of 65, received nothing in return.