SEC charges 8 social media influencers over alleged pump-and-dump scheme
SAN FRANCISCO -- The Securities and Exchange Commission has charged seven Twitter users and a podcaster in an alleged $100 million stock manipulation scheme run through social media, the agency said Wednesday.
According to the SEC, the seven Twitter users also used the messaging app Discord to promote certain stocks to "hundreds of thousands of followers," and then quietly sold their positions after a run-up in the stocks' prices.
The alleged scheme dated back to at least January 2020 and involved a nationwide network of participants, including four of the defendants who reside in Texas; two in California; one in New Jersey and one in Florida.
The podcaster named in the case allegedly also engaged in the illicit trading scheme and promoted the other defendants as expert traders, according to the SEC.
CNN reviewed a number of archived tweets belonging to one of the defendants. The account associated with the defendant tweeted frequently last May about Gamestop and AMC, two so-called "meme stocks" that saw significant public interest and trading last year.
The SEC's complaint calls for the US District Court for the Southern District of Texas to impose fines and to require that the defendants give up their allegedly ill-gotten gains, along with a ban on future misconduct.
The Justice Department simultaneously filed separate criminal fraud charges against the defendants, the SEC said.
The following seven individuals were charged with securities fraud:
Name State of Residence Twitter Handle
Perry Matlock Texas @PJ_Matlock
Edward Constantin Texas @MrZackMorris
Thomas Cooperman California @ohheytommy
Gary Deel California @notoriousalerts
Mitchell Hennessey New Jersey @Hugh_Henne
Stefan Hrvatin Florida @LadeBackk
John Rybarcyzk Texas @Ultra_Calls
