A former Oregon gubernatorial candidate has been charged in New York in an $8 million securities fraud scheme. Craig Berkman is now a Florida investment adviser. The alleged scheme capitalized on enthusiasm for Facebook shares.
Berkman was arrested today at his home in Odessa, Fla.
He was charged with claiming to own Facebook shares before the company went public last year when he did not directly own shares. Prosecutors say he pocketed much of the $8 million he received from more than 50 investors.
The Securities and Exchange Commission announced separate civil charges against Berkman.
He was the Oregon Republican party chair in the early 1990s, and ran unsuccessfully for governor in the Republican primary of 1994.
OPB contributed to this report.