Apparently, a year later, we’re still not done with the fallout from the Facebook IPO. The Manhattan District Attorney has just indicted Ronen Zakai, a former stockbroker, for an alleged scheme to defraud his pals with promises of Facebook shares.
He’s accused of soliciting $705,000 for something called the “Social Innovation Fund,” promising to use the money to buy Facebook stock and then… not. Instead, the D.A. says, he allegedly used the money “on various expenses – including country club membership fees, car payments, traveling, and shopping trips – and through large cash withdrawals.”
The perfect crime! No one will ever know!
Manhattan District Attorney Cyrus R. Vance alleges:
“The defendant is accused of scamming his own social network – including friends and acquaintances – ahead of the country’s biggest technology IPO. The victims included two individuals who used their retirement savings to invest in Facebook, Inc.”
Mr. Zakai is charged with grand larceny in the second and third degrees, securities fraud, and scheme to defraud in the first degree. Mark Zuckerberg continues to walk free.