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: firstname.lastname@example.org