Fla. man pleads guilty in $13M Facebook share case (Update)

June 25, 2013

A Florida investment adviser has pleaded guilty in a $13 million securities fraud scheme that prosecutors say capitalized on enthusiasm for Facebook shares.

Craig L. Berkman entered the plea Tuesday to securities fraud and wire fraud in federal court in Manhattan. The 71-year-old Berkman was a one-time Oregon GOP gubernatorial candidate.

He admits that he falsely claimed to investors in December 2010 that he owned shares of Menlo Park, Calif.-based Facebook Inc.

Prosecutors say he pocketed much of the $13.2 million he received from more than 120 investors. The government says he transferred the investors' money into his personal account rather than using it to acquire shares of Facebook. Sentencing is scheduled for Oct. 1.

Explore further: Financier charged in fake pre-IPO Facebook sales

Related Stories

Financier charged in fake pre-IPO Facebook sales

March 19, 2013

A Florida investment adviser was charged Tuesday with selling $8 million of fake Facebook shares ahead of the social network's highly anticipating public offering, officials said.

Facebook to hold press event, stock passes $30

January 9, 2013

Shares of Facebook are pushing above $30 for the first time since July after it sent out invitations to "come and see what we're building" Tuesday at its headquarters in Menlo Park, Calif.

US regulators bust pre-IPO tech stock scam

November 17, 2011

A Florida man was arrested on Thursday for running a scam in which he allegedly offered private shares in Internet firms such as Facebook and Groupon ahead of their going public, officials said.

NY man accused of trying to cheat Facebook

October 26, 2012

(AP)—A New York man has been charged in what authorities call a multibillion-dollar scheme to defraud Facebook Inc. and its chief executive, Mark Zuckerberg.

Morgan Stanley fined $5 mn over Facebook IPO

December 17, 2012

Morgan Stanley agreed Monday to pay a $5 million fine to settle charges that it improperly handled crucial information on Facebook's earnings ahead of the company's disastrous IPO.

Recommended for you

Forget oil, Russia goes crazy for cryptocurrency

August 16, 2017

Standing in a warehouse in a Moscow suburb, Dmitry Marinichev tries to speak over the deafening hum of hundreds of computers stacked on shelves hard at work mining for crypto money.

Researchers clarify mystery about proposed battery material

August 15, 2017

Battery researchers agree that one of the most promising possibilities for future battery technology is the lithium-air (or lithium-oxygen) battery, which could provide three times as much power for a given weight as today's ...

Signs of distracted driving—pounding heart, sweaty nose

August 15, 2017

Distracted driving—texting or absent-mindedness—claims thousands of lives a year. Researchers from the University of Houston and the Texas A&M Transportation Institute have produced an extensive dataset examining how ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.