[jesusmichael]

I doubt it was a "blue sky" issue. Since it seems like it was an "Accredited Investor" and they would have signed an waiver to that effect.

Probably had more to do with the firm acting as a broker in the deal, and violating some state statute on unlicensed brokers/dealers. They deposited the funds, so they would be acting as an intermediary. If unlicensed could face serious fines.