Fla. Man Charged in NY $8M Facebook Shares Fraud

By: Associated Press Email
By: Associated Press Email

NEW YORK (AP) — A Florida investment adviser has been charged in New York in an $8 million securities fraud scheme that capitalized on enthusiasm for Facebook Inc. shares.

Craig L. Berkman was arrested Tuesday at his home in Odessa, Fla.

He was charged with claiming to own Facebook shares before the company went public last year when he did not directly own shares. Prosecutors say he pocketed much of the $8 million he received from more than 50 investors.

The Securities and Exchange Commission announced separate civil charges against Berkman.

Prosecutors say Berkman began falsely claiming to investors in December 2010 that he owned Facebook shares. The government said he operated a private company called Ventures Trust II LLC.

It was unclear Tuesday who will represent the 71-year-old businessman.


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to comments@kbtx.com. Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-188
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 199014221 - kbtx.com/a?a=199014221