Knightsbridge Private Partners Accused of Selling Fake Shares of Stock
Knightsbridge Private Partners, a New York firm, has been accused of making over $2 million from October 2018 to January 2019 by selling fake shares of stock in pre-IPO companies. They offered “pre-IPO” shares of Uber, Airbnb, and Lyft, often taking advantage of the elderly. The Department of Justice is currently investigating Knightsbridge. Forbes reported that Bank of America had seized over $100,000 from the firm in relation to the alleged fraud.
Knightsbridge was soliciting investors, promising them the great opportunity to get in on a company before it was available to the entire public. One such investor who was a victim of the alleged fraud was an 86-year-old man from Alabama who was sold 2,000 phony shares of Uber at a price of around $62 per share, which cost him $150,000. Uber’s shares have fallen 40% since its IPO in May, so perhaps that was not a good investment regardless. Knightsbridge had also received a check of almost $200,000 for shares of the data analytics company Palantir, which has not filed for an IPO, nor does it have any plans to do so in the near future. Knightsbridge seems to have scrapped much of the information about itself from the internet, and the legal filing concerning this matter does not name any individuals. It will be interesting to see what comes from this case, and to see how they purported the fraud specifically, with most shares being traded online nowadays.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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