SEC Charges Two Fund Managers Over Misleading Facebook, Twitter Investments

One manager, Frank Mazzola, created two funds to buy shares in Facebook and other high profile technology companies, the SEC said today. Mazzola allegedly pocketed more than the 5% percent management fee he ostensibly charged for acquiring Facebook stock and selling the equity to new investors, the SEC said. The hidden charges created a disincentive for Mazzola and his firms, Felix Investments and Facie Libre Management, to negotiate a lower price for fund investors.

http://www.forbes.com/sites/abrambrown/2012/03/14/sec-charges-2-secondary-market-mangers-with-misleading-investors-pocketing-cash/