no one is going to jail
Whether or not jail time is a risk, Issuing and selling unregistered securities and selling them publicly to unsophisticated investors is a fairly serious thing. As illustration:
A federal judge ruled that two Florida penny stock traders who issued unregistered shares of the defunct Universal Express must pay fines of $14 million and $5.3 million.http://www.bizjournals.com/southflorida/news/2011/09/19/universal-express-penny-stock-traders.htmlWhether or not they fix their asics wont change a thing about that. But of course its not only labcoin running that risk.
jurisdictions. they matter and are freaking confusing to deal with regardless