Allen Weintraub, 48, of Boynton Beach, Florida, was sentenced to 111 months in prison yesterday for his role in a Facebook IPO scam. According to an agreement with prosecutors, Weintraub used an alias to lure potential investors into buying pre-IPO Facebook stock through a website called Private Stock Transfer, Inc.
In a post on Quora, Weintraub claimed to have purchased Facebook stock from Private Stock Transfer, Inc. and promised investors that they could buy shares at a discounted price. However, Weintraub had no intention of delivering the shares and instead used the money from the victims to fund his own lavish lifestyle.
Weintraub was able to swindle two victims out of a total of $414,000, and was also ordered to forfeit $140,280.47 and pay the same amount in restitution to the victims. He was also sentenced to three years of supervised release after his prison term.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, commended the investigative efforts of the FBI in bringing Weintraub to justice. ‘This case is a prime example of the FBI’s commitment to protecting the public from financial crimes,’ Ferrer said.
The case was prosecuted by Assistant U.S. Attorney Lois Foster-Steers, who praised the victims for coming forward and cooperating with the investigation. ‘We would like to thank the victims for their bravery in speaking out against Weintraub’s crimes,’ Foster-Steers said.
Weintraub pled guilty to two counts of mail fraud in February 2014 and was sentenced yesterday by U.S. District Judge Donald Graham. The case is a reminder of the importance of being cautious when investing in the stock market, and the consequences of falling victim to a scam.
RELATED: Facebook Stock Scammer Allen Weintraub Jailed for 111 Months
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Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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