Ex-Oregon governor candidate charged in Facebook IPO fraud

[formercia]

Source: Yahoo News





By Bernard Vaughan | Reuters – 7 mins ago


NEW YORK (Reuters) - A former Oregon gubernatorial candidate was arrested on Tuesday for his alleged role in defrauding investors who had hoped to buy shares of Facebook Inc before its initial public offering in May 2012, federal authorities said.
Craig Berkman, 71, falsely told investors he had access to scarce pre-IPO shares of Facebook and other social media companies such as LinkedIn Corp, Groupon Inc and Zynga Inc, the U.S. Securities and Exchange Commission said in a statement.
But instead of buying shares for investors as promised, Berkman made "Ponzi-like" payments to earlier investors and funded personal expenses, including costs in a bankruptcy case, according to the SEC, which filed a civil case.


--snip--
Berkman told investors the funds would be used to buy pre-IPO shares of Facebook, but instead the "vast majority" was transferred to other accounts Berkman controlled for his own personal benefit, according to the complaint.
Berkman has long been active in Oregon politics and served for a time as the head of the state's Republican Party, according to press accounts. He lost in the Republican primary for governor in 1994, and he explored a bid for governor in the 2002 race, according to The Oregonian.

--snip--

Read more: http://news.yahoo.com/ex-oregon-governor-candidate-charged-facebook-ipo-fraud-180442571--finance.html

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More Republicon Family Values.

[Archae]

1. I saw "Oregon" and was hoping it was that guy Rachel had on her show back in 2010.

I forget his name, but he ran again in 2012, and lost badly again.

To say he was off the rails of the crazy train is an understatement.

[Shrike47]

4. That was Art Robinson, who was running for Congress.

He ran again in 2012, losing by even a bigger margin, to his surprise.

[mpcamb]

2. Kinda wish they'd said 'Republican'

in the first paragraph.

[rsmith6621]

3. He Will Get Free Healthcare At Least.

[formercia]

5. Yeah, that's more than we get

Some people will do anything for Medical coverage.

[firenewt]

6. I'm beginning to think no Republican could survive a serious background check ................

So girls and boys, let the digging commence.

[classof56]

7. Craig Berkman, huh? Former head of the Republican party.

Gee...why am I not surprised?

Thanks for posting the good news!

[Eugene]

8. The fact that he's a prominent Republican got buried in the tenth paragraph.

Interesting.