Tampa Bay Criminal Defense Lawyer Blog
According to an online story on The Street.com, Facebook investment scams are proliferating on the Web and investors should be on the lookout, the securities industry’s main self-policing organization warned on Tuesday.Financial Industry Regulatory Authority (FINRA) warned in a a statement that con-artists have been pitching fake investments in Facebook and other “well-known social media companies.” The scams usually take the form of “pre-IPOs”, or the sale of unregistered shares in a private company to an investor prior to the initial public offering.
The release notes the Securities and Exchange Commission (SEC) recently settled a civil action against one trader “who allegedly bilked more than 50 U.S. and foreign investors out of more than $9.6 million in a series of pre-IPO scams involving purported shares of Facebook, Google and other well-known companies.”Among the tips FINRA is disseminating to the public, the release urges investors to ask themselves “why would a total stranger tell me about a really great investment opportunity?'”
The warning comes as Wall Street firms like JPMorgan Chase and Goldman Sachs have climbed aboard a mini-Gold Rush in hot, privately-traded social media companies.
If you or a loved one has been arrested, or is being investigated, for a potential White Collar Crime, Internet Crime and/or Theft-Related Offense, the Clearwater-based Blake & Dorsten, P.A. is on your side.
Contact former State of Florida Prosecutor Nicholas J. Dorsten today for a free consultation (before you even think about talking to law enforcement).
To speak directly with an experienced and aggressive criminal defense attorney, please contact the Blake & Dorsten, P.A., 365 * 24 * 7, at 727.286.6141. You can also reach us by email at: info@blakedorstenlaw.com