Mar 14, 2012 8:43 PM by Matt Stafford
WASHINGTON (AP) - Federal regulators are filing civil charges against two managers of investment funds that buy stocks of privately held Internet companies like Facebook. They are accused of misleading investors and failing to disclose fees.
In addition the Securities and Exchange Commission settled charges with SharesPost, an online exchange for trading stock in companies before they go public, and its CEO Greg Brogger. The market for that kind of stock has been growing fast, and the SEC has been investigating it for a year. The agency said SharesPost failed to register as a brokerage.
The SEC also reached a settlement with one of the managers, Laurence Albukerk, and his firm EB Financial Group. Charges are pending against the other manager, Frank Mazzola, and his firms Felix Investments and Facie Libre Management Associates.