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SEC Levels Fraud Charges Related to Facebook IPO

“A 1994 Oregon Republican gubernatorial candidate, Craig Berkman, was charged with fraud today by the U.S. Securities and Exchange Commission (SEC) for a “Ponzi-like scheme” around last year’s initial public offering of stock in Facebook Inc. (NASDAQ: FB). An associate of Berkman’s was also charged with aiding and abetting in the violations.

Berkman, who now lives in Florida, raised $13.2 million from 120 investors by selling shares in limited liability companies he owned that he claimed would either acquire pre-IPO shares of social media companies, acquire pre-IPO shares of Facebook, or acquire a company that already owned pre-IPO shares of Facebook.

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