Malaga Arabian Limited Partnership sold investments in the Spanish Arabian horse industry under Rule 506. James E. Mark, who purchased one of the partnership interests, alleged that the partnership...

Malaga Arabian Limited Partnership sold investments in the Spanish Arabian horse industry under Rule 506. James E. Mark, who purchased one of the partnership interests, alleged that the partnership violated Rule 506 because it never gave him any disclosure about the risks of the investment. He was not an accredited investor. At trial, the partnership said that it had surveyed investors to ensure that they were either accredited or sophisticated but had not actually read the surveys and did not have them available for the trial court. Is this offering exempt from registration under the 1933 Act?