FINRA, a U.S. financial regulators, warned, Tuesday, March 15, against scams offering investors access to an alleged actions of companies like Facebook, even before their IPO. "Building on investor demand for unlisted securities of companies known scammers behind these scams run the public by distributing the alleged actions of these companies," said FINRA in a statement.
An unlisted company may sell its own shares, unlicensed, in private transactions, but these investments "may have significant risks and are typically open to a select group of investors that meet a certain income level or asset, "says FINRA. PROJECT "POTENTIALLY FRAUDULENT" In the period preceding an IPO, most pre-offers are legitimate but some are frauds, and FINRA was recently informed of projects "potentially fraudulent" sale of shares on Facebook.
FINRA recently concluded an agreement to end civil proceedings against an independent broker who, according to the accusations, defrauded fifty U.S. and foreign investors for more than $ 9.6 million (6.9 million euros) in a series of scams relating to shares of Google, Facebook, and other known companies, the statement said. 
An unlisted company may sell its own shares, unlicensed, in private transactions, but these investments "may have significant risks and are typically open to a select group of investors that meet a certain income level or asset, "says FINRA. PROJECT "POTENTIALLY FRAUDULENT" In the period preceding an IPO, most pre-offers are legitimate but some are frauds, and FINRA was recently informed of projects "potentially fraudulent" sale of shares on Facebook.
FINRA recently concluded an agreement to end civil proceedings against an independent broker who, according to the accusations, defrauded fifty U.S. and foreign investors for more than $ 9.6 million (6.9 million euros) in a series of scams relating to shares of Google, Facebook, and other known companies, the statement said.
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