We all know that the SEC has been looking into private secondary markets, especially given the rise in pre-IPO trading in companies such as Facebook. And, action has come. According to Lexology, a year-long SEC investigation has led to ‘three actions involving the sale of shares in these funds.’

Lexology reports:

The first is SEC v. Mazzola, CV-12-1258 (N.D. Ca. Filed March 14, 2012). The defendants are Frank Mazzola, a registered representative who is the principal and owner of defendant Felix Investments, LLC, a registered New York City broker. A third defendant is Facie Libre Management Associates, LLC, an investment adviser for two pooled investment vehicles affiliated with Felix Investments. The two funds invested primarily in the shares of Facebook. As of January 2011 Face Libre managed more than $41 million for hundreds of investors in the two funds.

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Source: Lexology

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