Don’t buy shares in a Facebook IPO from people selling them who don’t own the shares or have access to deliver them, is the lesson several investors learned.
Three men were convicted of selling shares in the May, 2012 Facebook Inc (NASDAQ:FB) Initial Public Offering and bilking investors of millions. Fred Todd, Eliyahu Weinstein, and Aaron Glucksman, “offered a pair of investors … the opportunity to purchase large blocks of Facebook Inc (NASDAQ:FB) shares prior to the company’s [IPO] in May, 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO,” according to a New Jersey Department of Justice
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