Marvella is interested in purchasing securities in a rule 506(b) offering by Syntertech. Although Marvella lacks the requisite sophistication required by the exemption, she relies on her brother-in-law, George, for advice. Assuming Jorge has the requisite with that experience to meet the sophistication standard, which of the following circumstances would disqualify George from acting as a purchaser representative?

a. Marvella divorced her husband

b. George is an officer of Syntertech

c. George is an officer of Syntertech and does not tell Marvella of his position d. George is planning to buy a substantial block of stock offered by Syntertech

5-11

As an attorney, what risk of liability will Pricella incurred if she acts as a purchaser representative for Marvella? Is it likely that this liability is covered by her malpractice insurance policy?

5-12

Suppose Marvella, Who is third T and unwilling to pay high fees to anyone, refuses to hire a representative. May the issue repay the fee of Maravillas representative?