Photo: Global Newswire
The Securities and Exchange Commission charged Florida-based hedge fund manager John Mattera with selling fake shares in Facebook and Group to investors prior to the initial public offerings and using the money to buy jewelry and luxury cars.According to the filing, Mattera, 50, and a group of other individuals supposedly duped investors with their British Virgin Islands-based hedge fund The Praetorian Group.
As part of the alleged scam, Mattera and his accomplices told investors they owned shares shares in Facebook, Groupon and other highly coveted tech companies prior to their IPOs, the filing said.
According to a criminal complaint in Manhattan federal court, Mattera’s fund never owned the shares, but he still solicited millions by telling investors their money would be held in an escrow account.
However, Mattera allegedly misappropriated some of those funds to buy himself jewelry, art, private jets and luxury cars.
Speaking of luxury cars, Mattera apparently really loves Ferrari’s. He’s a member of the Ferrari Owners Club of North America, according to his LinkedIn profile.
Materra also enjoys yoga, boating, jet skiing, tennis and auto racing, according to his profile.