A Florida investment adviser was charged Tuesday with selling $8 million of fake Facebook shares ahead of the social network's highly anticipated public offering, officials said. The Justice Department said Craig Berkman, 71, was arrested on two separate securities fraud schemes involving Facebook shares. Berkman received a total of at least $8 million from these schemes, most of which he "misappropriated for his own benefit," a Justice Department statement said. He was arrested at his home in Odessa, Florida, and was to face the charges in federal court in Tampa. "As alleged, Craig Berkman seized on the interest in a highly coveted investment opportunity to swindle investors out of millions," US Attorney Preet Bharara said. According to officials, Berkman said his Ventures Trust II LLC falsely claimed to own shares in Facebook as early as 2010, more than a year before its IPO. Investors discovered the fraud when they tried to redeem their shares in 2012, officials said. Berkman was charged with two counts of securities fraud and two counts of wire fraud. If convicted, he faces a maximum sentence of 20 years in prison on each of the four counts in the complaint and fines in the millions of dollars. The case is not related to questions about the underwriting or valuation of the Facebook IPO last year. The shares slid from an offering price of $38, losing more than half their value, before recovering some of the losses.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor