If Youve Violated Securities Law PRIOR to Close the SEC wants you to do THIS

But a rescission letter is something that you prepare when you know, or you at least have a belief that you violated securities laws. You basically write a very strict letter to all of your investors and say, look, it’s come to our attention that we may have violated or have violated securities laws for the following reasons. And because of that, we’re giving you the opportunity to back out of the deal if you so desire. So I’m offering for us to buy, basically buy your shares back from you, rescind the transaction, give you all your money back plus interest. And that’s the key there as well. You’ve got to give them best interest. But the key to that letter is to just make it very clear to the investor that they do have an option to back out.