NEW YORK - An Odessa, Fla. investment adviser has been charged in New York in an $8 million securities fraud scheme that capitalized on enthusiasm for Facebook Inc. shares.
Craig L. Berkman was arrested Tuesday at his home in Odessa.
He was charged with claiming to own Facebook shares before the company went public last year when he did not directly own shares. Prosecutors say he pocketed much of the $8 million he received from more than 50 investors.
The Securities and Exchange Commission announced separate civil charges against Berkman.
Prosecutors say Berkman began falsely claiming to investors in December 2010 that he owned Facebook shares. The government said he operated a private company called Ventures Trust II LLC.
It was unclear Tuesday who will represent the 71-year-old businessman.