How the heck can you get caught and prosecuted as a bird dog?

You want to know if your friend can flee the country and be safe from prosecution.2.

I’m noticing an uptick in sponsors being prosecuted for fraud by the SEC lately, and even more being accused of fraud by investors that haven’t been prosecuted yet, so I’d caution anyone looking into syndications in this current (very frothy) point in the market cycle to vet both their sponsors and individual deals very heavily, especially among the new wave of crowdfunding sites and companies with great marketing, high fees and low transparency.

Here is statute: https://www.flsenate.gov/Laws/Statutes/2012/697.08QUESTION:  Can I legally due these sub2 wrap deals on folks that have not yet gone to auction without criminal prosecution?

Most title companies won't close around that and will require a release.State agencies have authority to investigate and prosecute with the jurisdictional boundaries if the statutes authorizing their existence. 

However, I have not yet met anyone or heard of anyone in California who has been successfully prosecuted for simply backing out of a contract within the contingency period. 

Bank fraud is the easiest to prove, show and prosecute, no loss needs to be suffered by a bank, only the fact that they were given false information in a loan application needs to be shown.

United States, 333 U.S. 10, 14]:Denial of Rights of defense and privilege in criminal prosecution.

And made even more clear was that they are not trying to prosecute anybody but educate.

Let me throw in there that he was doing some jicky stuff on the back end that really caused the problems, but the Attorney General prosecuted under unlicensed brokerage and referenced that in their opinion an option did not constitute equitable interest.