A junior banker at William Blair suspects a fraudulent omission in a Reg D (Rule 506) offering in State S. What is the BEST course of action for the State S Administrator?

1. AInvestigate and, if appropriate, enforce state antifraud statutes.✓ Correct answer
2. BRequire the issuer to re-file the offering for state registration.
3. CImpose a ban on all future Rule 506 offerings by the issuer.
4. DImpose additional disclosure requirements before further sales.

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