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Mattera Gets 11 Years for Facebook and Groupon Scam

June 21
2:38 PM 2013

On Friday, former fund manager John Mattera was sentenced to serve 11 years imprisonment. This was after his guilty plea on charges including defrauding investors. Mattera told investors that he will put their cash investments in Facebook Inc. and Groupon Inc. shares before the two firms went public.

District Judge Richard Sullivan stated that the sentence was arrived because Mattera devastated his customer's saving. It was also at the high end of what prosecutors requested. The sentence was also warranted after four other convictions related to theft and Fraud. Mattera requested reduction of his sentence to less than four years.

John Mattera was the former chairman of the mutual fund advisory board of Praetorian Global Fund Ltd. He pleaded guilty to charges last October. His guilty pleadings included charges of securities fraud, wire fraud, money laundering and conspiracy to commit securities and wire fraud. He also admitted transferring US$11 million from investors into an escrow prior to the start of the anticipated IPOs.

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