Home Breadcrumb caret Industry News Breadcrumb caret Industry Man exploits Facebook IPO craze with Ponzi scheme The long arm of the law caught up with a phony ‘fund manager’ who defrauded investors seeking to buy stocks of social media companies including pre-IPO shares of Facebook. An investigation conducted by the Securities and Exchange Commission found a financier living in Florida fleeced investors with claims of special access to coveted social media […] By Staff | March 19, 2013 | Last updated on March 19, 2013 1 min read The long arm of the law caught up with a phony ‘fund manager’ who defrauded investors seeking to buy stocks of social media companies including pre-IPO shares of Facebook. An investigation conducted by the Securities and Exchange Commission found a financier living in Florida fleeced investors with claims of special access to coveted social media stocks, says an SEC release. It was later found that he collected “at least $13.2 million from 120 investors” to pay another set of investors who fell prey to a similar trick pulled off by the accused. Also read: SEC may become more aggressive SEC charges Florida couple with defrauding seniors Will RCMP monitor electronic trades? Man runs $12 million Ponzi scheme Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo