The highly profitable joyride taken by two firms that have traded in the non-public shares of Facebook and other hot tech startups is about to be slowed, the NY Post reports. The Securities and Exchange Commission is about to levy financial sanctions against New York-based Felix Investments for its frothy marketing of investments in the fast-growing tech companies, The Post has learned.
Felix has been scooping up shares of Facebook, LinkedIn, Twitter and other companies for years and placing them in pools for their investor clients.
While the pools have been highly profitable, Felix has apparently run afoul of SEC rules regarding how they are allowed to market the shares.
The sanctions could come down as soon as today, according to a source with knowledge of the probe. The sanctions, first reported by Bloomberg, would mark the first move by regulators against firms trading in the fast-growing sector of pre-IPO shares.
The SEC is also investigating the tactics of SharesPost, a marketplace for private shares.
Read more: http://www.nypost.com/p/news/business/pre_ipo_no_no_REdHFguqQq10k80Vy1uoOP
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