The amendments to Rule 504 also subject issuers to Rule 506(d) bad actor disqualifications, providing additional investor protection.As a general rule, reporting under the Exchange Act is required once an issuer has 500 investors, or 2,000 if all investors are accredited.

Are there bad actors?

I'm a new small time investor in the East Coast, but am also first an actor and a model.

You always have to be cautious but I feel like BP does a pretty good job of weeding out 'bad actors' as one might call them. 

When we did a new development we set up a new company exclusively for that development and when the development was sold out, we would go out of business for that company.My wife has her own businesses, not in real estate, but now in candy. 

It's tough to invest in a market that you're not familiar with and there are no some bad actors in the out-of-state turnkey game.

I had an idea to buy candy at Walmart and sell to my peers for cheaper than the cafeteria vending machines.

With such a low barrier to entry, it attracts a disproportionate percentage of bad actors.

You're not selling candy bars or a used car. 

By keeping the damage to "rich" ppl the politicians have hedged their bets bc when some nefarious actor comes alone with a scam syndication and walks off with all the LP's cash, the headline risk is low.