SEC Tries To Find Footing In Murky Pre-IPO Market

Law360, New York (March 15, 2012, 9:06 PM EDT) -- Federal regulators this week launched an effort to stamp out fraud in the opaque secondary marketplace for still-private Internet darlings like Facebook Inc. and Twitter Inc. as they try to get a handle on an unwieldy trading frontier that is already raking in billions.

On Wednesday, the U.S. Securities and Exchange Commission lodged civil charges against two money managers, accusing them of misleading and overcharging investors in funds formed to buy Facebook, Twitter and other social media companies. And in a separate action, the agency charged...
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