
Three men were arrested at their homes Tuesday and charged with bilking an investor, dangling special access to Facebook shares prior to the social network’s initial public offering as bait.

Three men were arrested at their homes Tuesday and charged with bilking an investor, dangling special access to Facebook shares prior to the social network’s initial public offering as bait.
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Craig Berkman, a finance manager in Florida and former Oregon gubernatorial candidate, was hit with fraud charges by the Securities and Exchange Commission’s enforcement division over what regulators called a Ponzi-like scheme that promised but never delivered pre-initial public offering shares of Facebook and other companies.

What happened to more than $3 million that was allegedly raised by venture capital fund Ventures Trust II to purchase Facebook shares prior to the social network’s initial public offering? The Securities and Exchange Commission is attempting to answer that question.