minute read
ADVERTISEMENT
The SEC has charged seven social media figures in an alleged $100 million stock manipulation scheme conducted via discord and other social media apps.
The SEC said that the seven users promoted stocks to "hundreds of thousands of followers" and then sold their positions after the stocks increased in price, which included the sale of so-called "meme stocks."
The SEC accuses the group of the behavior since at least January 2020. It involved a nationwide network of participants, including four defendants in Texas, two in California, one in New Jersey, and one in Florida.
"As our complaint states, the defendants used social media to amass a large following of novice investors and then took advantage of their followers by repeatedly feeding them a steady diet of misinformation, which resulted in fraudulent profits of approximately $100 million," said Joseph Sansone, Chief of the SEC Enforcement Division’s Market Abuse Unit.
"Today’s action exposes the true motivation of these alleged fraudsters and serves as another warning that investors should be wary of unsolicited advice they encounter online."
A statement from the SEC continues: "The complaint further charges Daniel Knight (Twitter Handle @DipDeity), of Texas, with aiding and abetting the alleged scheme by, among other things, co-hosting a podcast in which he promoted many of the other individuals as expert traders and provided them with a forum for their manipulative statements. Knight also traded in concert with the other defendants and regularly generated profits from the manipulation.
"The SEC's complaint, filed in the U.S. District Court for the Southern District of Texas, seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties against each defendant, as well as a penny stock bar against Hrvatin. Criminal charges against all eight individuals also were filed in a parallel action brought by the Department of Justice’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas."
The SEC said that the seven users promoted stocks to "hundreds of thousands of followers" and then sold their positions after the stocks increased in price, which included the sale of so-called "meme stocks."
The SEC accuses the group of the behavior since at least January 2020. It involved a nationwide network of participants, including four defendants in Texas, two in California, one in New Jersey, and one in Florida.
"As our complaint states, the defendants used social media to amass a large following of novice investors and then took advantage of their followers by repeatedly feeding them a steady diet of misinformation, which resulted in fraudulent profits of approximately $100 million," said Joseph Sansone, Chief of the SEC Enforcement Division’s Market Abuse Unit.
"Today’s action exposes the true motivation of these alleged fraudsters and serves as another warning that investors should be wary of unsolicited advice they encounter online."
A statement from the SEC continues: "The complaint further charges Daniel Knight (Twitter Handle @DipDeity), of Texas, with aiding and abetting the alleged scheme by, among other things, co-hosting a podcast in which he promoted many of the other individuals as expert traders and provided them with a forum for their manipulative statements. Knight also traded in concert with the other defendants and regularly generated profits from the manipulation.
"The SEC's complaint, filed in the U.S. District Court for the Southern District of Texas, seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties against each defendant, as well as a penny stock bar against Hrvatin. Criminal charges against all eight individuals also were filed in a parallel action brought by the Department of Justice’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas."
ADVERTISEMENT
ADVERTISEMENT
Sign in to comment
Powered by StructureCMS™ Comments
Join and support independent free thinkers!
We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.
Remind me next month
To find out what personal data we collect and how we use it, please visit our Privacy Policy
Comments