Facebook IPO Investor Scam Leads to Arrest of Three Men
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Three men who claimed they had special access to Facebook Inc. shares before its initial public offering last year were charged with defrauding an investor of $6.7 million.
Eliyahu Weinstein, 37, Alex Schleider, 47, and Aaron Muschel, 63, were charged in a complaint unsealed today in federal court in Newark, New Jersey. They offered blocks of Facebook shares in three transactions to a New Zealand investor before the company’s IPO last May, even though they had no access to them, authorities said.