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: SECLaw.com

Facebook Pre-IPO Stock A Scam

By Mark H. Astarita, Esq.

(Bloomberg News) Facebook Inc.?s privately held shares that are trading before an initial public offering may be attracting con artists who exploit investor demand by selling bogus stock, the main U.S. brokerage regulator said.?While most pre-IPO offerings are legitimate, some are frauds in which con artists sell shares they do not actually have,? the Financial Industry Regulatory Authority said Tuesday in a statement. The watchdog learned of some ?potentially fraudulent schemes to sell purported shares? of Palo Alto, California-based Facebook, it said, without elaborating.More...

Full post as published by SECLaw.com on March 16, 2011 (boomark / email).

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