Mutual fund operator pleads guilty to selling bogus Facebook stock
The operator of a mutual fund has pleaded guilty in U.S. court to charges that he operated a US$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.
