I wouldn't be so sure, there is a lot of legal precedent obviously since it's inception but the S&E Act of 1933 lays out specific guidelines of what constitutes a security, and and exception from registration. Though I think that is hardly the issue here, that would be more a separate criminal / civil case against this person/persons versus those whom may have purchased these securities, or lent this person money!

http://www.mitchell-attorneys.com/legal-articles/securities-registration-and-exemption/