> Fraud is already illegal, and if it's happening then the defrauded parties should take the swindlers to court and prove it, and the justice system should punish them.

Non-accredited investors, by definition, don’t have a lot of money.

If that money is stolen from them via fraud, where does the money to fund the lawsuit come from?

What if the total potential judgement is less than the cost of the court case?

Regulations exist, in part, because legal remedies are incredibly inefficient.