Mutual fund operator pleads guilty to selling bogus Facebook stock
The defendant sold $13 million worth of investments in companies he claimed had investments in Facebook and Groupon
IDG News Service - The operator of a mutual fund has pleaded guilty in U.S. court to charges that he operated a $13 million scheme to sell shares of Facebook and Groupon stock before their initial public offerings.
John Mattera, who served as chairman of the advisory board of Praetorian Global Fund in 2010 and 2011, has pleaded guilty in U.S. District Court for the Southern District of New York to charges of securities fraud, wire fraud and conspiracy to commit securities fraud and wire fraud, the U.S. Department of Justice announced Tuesday.
Mattera faces a maximum sentence of 20 years in prison on each of the two fraud counts, and a maximum sentence of five years in prison on the conspiracy charge. He also faces a fine $5 million or more.
Mattera is scheduled to be sentenced on Feb. 1.
The defendant was responsible for the day-to-day management decisions at Praetorian, the DOJ said. Beginning in mid-2010, Mattera and others offered investors the opportunity to invest in companies set up by Praetorian. Mattera falsely told prospective investors that the companies, called the G Power Entities, owned shares in companies including Facebook and Groupon when they were still private.
Mattera told investors to expect that initial public offerings would soon happen, the DOJ said.
"With false promises of profitable investments in high-profile stock, John Mattera lured unsuspecting investors into a meticulously orchestrated, multi-million dollar fraud scheme, and used their money to fund his lavish lifestyle," Preet Bharara, U.S. attorney for the Southern District of New York, said in a statement. "With today's guilty plea, we begin the process of holding him to account for his crimes."
Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is firstname.lastname@example.org.
- Silicon Valley's 19 Coolest Places to Work
- Is Windows 8 Development Worth the Trouble?
- 8 Books Every IT Leader Should Read This Year
- 10 Hot Hadoop Startups to Watch
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Infographic: Converged Infrastructure Benefits This Infographic quantifies the savings organizations are realizing from increased deployment speed, higher availability, and lower annual costs.
- CIOs Deliver Productivity Breakthroughs with Intelligent Digital Signage Retailers have long recognized the influence that digital signage provides over a shopper's point-of-purchase decision making process.
- Going Paperless? Here's What You Need to Think About As makers of some of the world's most popular PDF solutions, we often consult with businesses & governmental agencies that have the goal...
- The Big Data Opportunity for HR and Finance If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big...
- Building Tomorrow's Infrastructure Listen to this podcast to discover how Crider Foods worked with PC Connection to update their IT infrastructure, while maintaining compliance and control.
Enhance Your Virtualization Infrastructure With IBM and Vmware
Date: Wednesday, May 14, 2014, 1:00 PM EDT
Virtualization technology is now expanding beyond the server compute elements to encompass networking and storage...
All Legal White Papers |