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StraightPath founders convicted in pre-IPO investment scheme

Photo: Carl Court/Getty Images

Reported charges included selling pre-IPO shares the defendants did not possess, undisclosed fees, and mixing investor funds.

A Manhattan federal jury this week convicted three founders of the stock vendor firm StraightPath Venture Partners, siding with prosecutors who argued that the defendants defrauded hundreds of investors in a $400m scheme revolving around pre-initial public offering (pre-IPO) shares.

After a two-week trial and a relatively short deliberation, the