WASHINGTON – It seemed like an innovative way to buy a beer company: Start an online campaign to purchase Pabst Brewing Co. and sell shares on Facebook and Twitter to cover the $300 million cost.
Michael Migliozzi II and Brian William Flatow found 5 million people who said they would invest a total of $200 million. But the federal government halted the venture after it informed the two men of one major oversight — they neglected to register the public offering with the Securities and Exchange Commission, a violation of federal law.
On Wednesday the SEC said it reached a settlement with the two advertising executives. The men, who never collected any money, agreed to stop selling shares to the public.
The case spotlights a growing challenge for regulators, who must patrol business online ventures and ferret out scams disguised as stock offerings.
Copy the Story Link
Send questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.