Forget about winning the lottery! Public demand for Facebook stock is huge and with all of the hype surrounding the initial IPO anyone who can get their hands on a few shares of Facebook stock will become an instant Millionaire! All you have to do is call is my guy....here's the number....

If you've heard that recently --- Beware!

I have been handling calls from interested potential Facebook investors since Facebook announced their IPO. Most investors want to get in on the ground floor, buy Facebook stock while it's "cheap" and sell it once it becomes public for a GARGANTUAN return. Who wouldn't want the "next hot stock?" I hate to be the bearer of bad news but there is no Facebook stock available to the public at this time. So anyone who says to you, "I know a guy that knows this other guy whose cousin works for Facebook on the weekends" is probably getting ready to con you so run in the other direction as fast as you can.

Protect Yourself 

Fraudsters would have investors believe that virtually anyone can get in on pre-IPO deals of small, little-known start-ups as well as those of large, popular companies (like Facebook). One sure-fire way to avoid being taken in by an unsolicited offer is to ignore it-regardless of how you heard about it. Someone claiming to have shares of Facebook or some other social networking company may very well be a paid promoter or, more likely, a con artist trying to take your hard-earned money.  

To steer clear of potential scams, follow these tips:

• Consider the source. If you received an unsolicited offer to invest in a pre-IPO opportunity-by any means-don't take the bait. It's easy for promoters to make unsubstantiated claims about owning stock or being able to offer you shares of stock they have somehow been able to accumulate.  The stories a con artist might spin are innumerable but share one trait-they are all built on lies and deception.
• Always ask: "Why me?" An unsolicited offer to buy pre-IPO shares raises the obvious question: Why would a total stranger tell you about a really great investment opportunity? The likely answer is that there is no such opportunity.
• Be alert to persuasion. Virtually all pre-IPO scams dangle the prospect of exclusive access to eye-popping returns (an example of the "phantom riches" tactic) at a discount (the "reciprocity" tactic) if you act quickly ("scarcity").  Many scams also exploit "source credibility," trying to build your trust by claiming falsely to be with a reputable firm. And others, such as those purporting to involve well-known companies, use "social consensus" to suggest that everyone wants in so the deal must be good. 
• Verify whether the person touting the stock or investment is licensed. A legitimate investment salesperson must be properly licensed, and his or her firm must be registered with the Financial Industry Regulatory Authority (FINRA), the SEC or a state securities regulator-depending on the type of business the firm conducts. To check the background of a broker, use FINRA BrokerCheck. For an investment adviser, use the SEC's Investment Adviser Public Disclosure website. Also, be sure to call your state securities regulator. You can find that number in the government section of your local phone book or by contacting the North American Securities Administrators Association (NASAA).
• Determine if you're being conned by a convicted criminal. Check the Federal Bureau of Prisons Inmate Locator to determine if a solicitation is coming from someone who has served time in a federal prison. A surprising number of investors are conned each year by career criminals plying the only thing they know how to do. Many states also have similar prisoner locator systems.
• Be a search engine sleuth.  Use search engines to learn as much as you can about a solicitation and those behind it. For instance, if the individual promoting the investment has a history of fraud or criminal activity, you might find news reports and court documents with details. And, if an investment firm is mentioned, research its address using Internet search engines (even after you to look up the firm in BrokerCheck). It's possible the fraudsters are using a false or non-existent address or that the address-even a posh-sounding one-leads to a mail stop or a cubbyhole that might be only a desk and a phone. It's even possible that the fraudster has hijacked the name of a legitimate firm-but the address or phone number provided may not match with the entity in BrokerCheck.
• Never send money to an individual or firm that you are hearing from based on an unsolicited communication. Even if you have met or spoken directly with someone selling an investment, never write a check out to the individual. Your money is apt to end up in a personal bank account, never to be seen by the investor.
• Get an unbiased second opinion. The only way to verify whether a particular pre-IPO opportunity is legitimate is to conduct in-depth due diligence.  To fully understand the terms of the deal and any restrictions that apply, you will likely need to enlist the aid of professionals who are in no way connected to the deal, including an attorney who is skilled in both securities law and contract law or a licensed investment professional.

If you believe you have been defrauded-or treated unfairly by a securities professional or firm-please send FINRA a written complaint. And if you suspect that someone you know has been taken in by a scam, be sure to give them that tip.  

Mail or Fax:
FINRA Complaints and Tips
9509 Key West Avenue
Rockville, MD 20850
Fax: (866) 397-3290

(Source: FINRA)