Why dont American Greed never mentions this

Just finished watching an episode (the one about the wannabe Hollywood producer). And I wish that American Greed tells viewers that you cannot raise private investment funds through telemarketing. Telemarketing should only be used for purchase of non-investing products (like Home Shopping network) or for publicly traded securities (securities listed on a stock exchange or pink sheets which one requires a broker's license. (Side note: Pink Sheets are what you see on Wolf of Wall Street)

For a private offering, you have to solicit from sophisticated and accredited investors (individuals with net worth of at least a million dollars who have investment experience and knowledge)and family members only. You can't ask an old lady to invest in your private company unless she is a family relative. The fact that this Hollywood Producer hired telemarketers to pitch to strangers to invest in his movie studio and raises $21m - he already broke securities law (SEC Regulation D). American Greed should mention that.

Maybe I will write to AG on this. Ive seen a lot of episodes in which telemarketing is used and no mention that was the first rule they broke.

FYI there is a fairly new exception that allows you to ask strangers for money - up to 35 people (Rule 506) but you cannot advertise the investment.