Is this normal? (reg D 506(b) compliance question)

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Illustrative scenario prepared by my practice.
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Hypothetical question

Sorry for the wall of text. Look, i'm dealing with a situation and need some guidance.

Reg D 506(b) compliance question. I've been dealing with this for about 11 months now and the situation isn't improving.

I have already consulted briefly with a lawyer but got conflicting advice sadly.

Should I hire a lawyer for this or try to handle it myself?