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Securities Commissioner Enters Cease, Desist Order Against Facebook Marketplace Imposter

Little Rock, Ark.— The Arkansas Securities Department Commissioner, Eric Munson, entered a cease-and-desist order against Facebook Pay (USA) Limited (FPUL), an unincorporated entity doing business online and interacting with Arkansans. The Order directed FPUL to stop engaging or attempting to engage in money exchanges in Arkansas until it is properly registered under the Arkansas Money Services Act.
The order found that FPUL impersonated a legitimate Arkansas Money Transmitter licensee, Facebook Payments Inc. In doing so, FPUL defrauded an Arkansan (AR1) by acting as a buyer when AR1 attempted to sell her phone on the Facebook Marketplace. Before the sale could be finalized, FPUL required AR1 to fund an additional $2,000 to receive her money. Realizing that something was wrong, AR1 reached out to the Arkansas Securities Department in hopes of protecting other Arkansans from the same scam.
“We are seeing more and more scammers impersonating common entities that we know and interact with on the daily,” Munson said. “It is important to remember that the Arkansas Securities Department has ample tools at its disposal to help Arkansans with many different money and securities related matters. For instance, if you come face-to-face with an entity that is asking you to send money to them or asking questions relating to your securities, we can run a quick search and help determine if the company is legit or not.”
Munson encourages investors to investigate before they invest. They can contact the Arkansas Securities Department with questions about any investment opportunity or the person offering an item for sale before investing in the product. Contact 1-800-981-4429 to report suspected fraud, inappropriate securities business practices or to obtain consumer information.
The ASD cautions citizen investors of all ages and experiences to thoroughly scrutinize and research any investment opportunity or offer.  Contact the ASD at 1-800-981-4429 to check out any person or financial professional offering an investment opportunity or investment advice for a fee and the products they offer for proper registration.  Contact the ASD to report suspected fraud, inappropriate securities business practices, or to obtain consumer information. The ASD provides free investor education and fraud prevention materials in print and through educational presentations upon request.
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