Law and Order

Three Men Arrested for Facebook IPO Scam (So At Least Somebody Made Money Off of It)

Lock it up. (Photo: Smedio)

Three men in New Jersey were arrested yesterday for allegedly swindling nearly $7 million from an investor by claiming that they had “special access” to shares of Facebook prior to it going public last May.

Federal prosecutors arrested Aaron Muschel, 63, of Brooklyn, and Alex Schleider, 47 and Eliyahu Weinstein, 37, of Lakewood, N.J. and charged them with¬†wire fraud conspiracy.¬†Bloomberg reports that they offered a New Zealand investor “blocks of Facebook shares” even though the men had no access to them. They preyed off the near deafening buzz, that seemed to promise Great Gatsby-like riches, to those who cash in on the site’s IPO. Read More