FBI arrests Dutch man for selling fake Google shares

The FBI arrested a Dutch man in New York earlier this month for allegedly selling about US$2.8 million in fictitious shares of Google Inc, the world's most-used Internet-search site, the San Francisco Chronicle reported on Friday.

Shamoon Rafiq was arrested at his home on March 5, the newspaper reported. Rafiq received about US$500,000 from at least four people for shares of Google Series B Preferred Stock, prior to the company's imminent initial public offering, the paper said, citing unidentified authorities familiar with the matter.

The FBI said those who bought the shares were the chair-man of a global telecommunications company, a New York investment banker, a senior executive at a brokerage firm and a corporate attorney, the paper reported. None of the four were identified further.

Rafiq allegedly told the victims that he was a limited partner with a venture capital firm arranging Google's IPO, and he had the ability to buy shares normally reserved for family and friends at US$12 a share, the paper reported, citing authorities.

Rafiq told those who bought the shares to transfer money to his New York or Amsterdam bank accounts, the paper said.

Google, based in Mountain View, California, doesn't have Series B preferred stock, the paper said, citing the complaint.

Doug Morris, Rafiq's public defender declined to comment, the paper said. Attempts by Bloomberg News to reach Morris were unsuccessful.

A telephone call to Google by the Chronicle seeking comment wasn't returned.

Google has denied any ties to Rafiq, as has the unidentified venture capital firm, according to the FBI.
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