Welcome to RantCrush Top 5, where we take you through today’s top five controversial stories in the world of law and policy. Who’s ranting and raving right now? Check it out below:

FBI Arrests U.S. Soldier With Ties to ISIS

The FBI has arrested an active U.S. soldier based in Hawaii for pledging allegiance to ISIS and working to buy a drone for the terrorist group. He also reportedly wanted to “kill a bunch of people” with his rifle, and copied secret military documents to give to ISIS, although none of the documents appear to have been successfully transmitted. Yesterday, Sergeant Ikaika Kang appeared in federal court in Honolulu. The FBI spent a year investigating the soldier and finally pinned him down using undercover agents posing as Islamic State representatives.

Apparently, Kang had made controversial comments in 2012, and his military clearance was revoked. But it was reinstated a year later. Then, last year, Army officials opened an investigation into Kang. Reportedly, Kang said that the Orlando nightclub shooter did “what he had to do” and that America is the only terrorist organization in the world. He also said that Hitler was right and that he “believed in the mass killing of Jews.”

U.S. Army soldier arrested on charges of helping ISIS was previously awarded “Global War on Terrorism Service Medal” https://t.co/TMFVHNYvIh

— ABC7 Eyewitness News (@ABC7) July 11, 2017

Emma Von Zeipel

Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

The post RantCrush Top 5: July 11, 2017 appeared first on Law Street.

It’s been a busy few weeks for Peter Thiel. First, news broke that Thiel’s nemesis Gawker is shutting down (and blaming Thiel for its demise). Now, everyone is talking about a new startup that Thiel is backing, that would seemingly make it easier for plaintiffs to pay for civil lawsuits.

The startup is called Legalist. It focuses on litigation finance, which is a fancy way of saying that it funds lawsuits by other people, and then takes a cut of the settlement–up to 50 percent. Legalist isn’t the first company to come up with this idea by any means. But it thinks it has a better shot at identifying the winning cases, by using algorithms to “analyze millions of court cases to source, vet, and finance commercial litigation.”

On its website Legalist explains:

Unlike other litigation finance companies, Legalist uses data-backed methods to select, vet, and invest in litigation. Our algorithms trawl tens of millions of past court cases to accurately and efficiently assess litigation risk. As a result, Legalist is able to make faster decisions, on more cases.

The company was founded by two Harvard undergrads, Eva Shang and Christian Haigh; they were at least partially funded with a $100,000 Thiel Foundation grant. However, it does seem like Legalist is distinct from the kind of lawsuit that Thiel bankrolled against Gawker, brought by Hulk Hogan. Shang told the Guardian: “I used to work for a public defender in DC. We’re not funding criminal cases, nor would I be funding any suits against the media.” She instead floated the idea that Legalist could be used to help in a case like a “bakery damaged by a burst pipe bogged down in costly litigation.”

While Legalist’s aims appear to be good, the fact that Thiel is at all involved has garnered a lot of attention, and it’s not hard to imagine why. Thiel bankrolling Hogan’s lawsuit against Gawker, and Gawker’s subsequent bankruptcy and downfall, have worried a lot of people. For example, Trevor Timm of the Daily Dot wrote an excellent and thoughtful (albeit snarky) list of questions for people “cheering Gawker’s demise.” Dan Kennedy, an associate professor at Northwestern’s School of Journalism said as part of an answer in an interview:

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Legalist: Peter Thiel Backed New Startup that Helps Fund Lawsuits appeared first on Law Street.

When you decide to start a business, you need to get all of your ducks in a row. Financially. Mentally. And legally.

The JOBs Act has helped a lot of new businesses sprout up over the last year, and crowdfunding sites like Kickstarter have proven to be the catalyst that a lot of budding entrepreneurs needed. Crowdfunding and earlier access to funding is making it easier for people (especially young people) to start their dream of being self-employed sooner than ever before.

While all of this new business development is lubricating our economy, creating opportunities for employment, and adding to the overall landscape of innovation and creativity, it is also raising legal questions.  As I’ve touched on previously, the SEC has gone through many adjustments and set in place regulations to protect both the entrepreneur and the investor.

Here’s a list of the most recent crowdfunding regulations (thanks, Forbes!).

• The amount an issuer can raise is capped at $1 million in any 12-month period.
• The amount a person can invest in all crowdfundings over a 12-month period is capped at 10 percent of annual income or net worth (incomes of $100,000 or more) or the greater of $2,000 or five percent of annual income or net worth (incomes of less than $100,000).
• Crowdfunding must be done through a registered broker-dealer or registered “funding portal.” Broker-dealers and funding portals may not solicit investments, offer investment advice or compensate employees based on sales. Traditional investment banks have shown little interest in crowdfunding, leading to speculation that crowdfunding will be facilitated by lesser-known financial institutions with little or no retail investment track record.
• Crowdfunding requires a disclosure document to be filed with the SEC at least 21 days prior to first sale, and requires scaled financial disclosure, including audited financial statements for raises of more than $500,000.
• Unlike Regulation D Rule 506 private placements to accredited investors following the JOBS Act, crowdfunding does not allow advertising except solely to direct investors to the appropriate broker/funding portal.
• Annual reports must be filed with the SEC by a company which completes a crowdfunding round.

Law firms specializing in business law need to accommodate the new influx of startups and stay up to date on the ever-changing and developing market, and I can’t stress enough the importance of speaking to someone who knows the exact you need to take. Startups have high risk potential, so it’s important that when presenting your idea to investors or to future clients you have everything organized appropriately. Many law firms, such as Manhattan’s Cohen Schneider & O’Neill, are taking note of the new potential market opportunities. One of this firm’s main areas of focus is on entrepreneurship and startups, for which they offer a comprehensive package for those ready to venture out on their own. For example, they can help the budding entrepreneur with particulars such as: required document preparation in the appropriate jurisdiction; compliance requirements and training, drafting and executing bylaws, resolutions, and stock issuance; tax ID registration; as well as brainstorming and consultations with a legal startup team.

So, basically, although things are getting easier in the market for new businesses, you still need to lawyer up, because it’s never easy when things aren’t done by the books. Save yourself some time and lots of money and take care of the legalities before you finish designing your logo.

—

Alexandra Saville (@CapitalistaBlog) is a PR & Media Outreach Manager. She has experience in the publishing and marketing worlds and started her own publishing company right out of college.

Alexandra Saville

Alexandra Saville is the Media and Writing Specialist at Law Street Media. She has experience in the publishing and marketing worlds and started her own publishing company right out of college. Her blogs, The Capitalista and Capitalista Careers, focus on the young and the entrepreneurial.

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