'Influencers' on stock-manipulation charge
A group of social media ’influencers’ has been charged with conspiring to manipulate stock prices, in a scheme that allegedly netted them US $114 million.
Prosecutors say that the eight men, aged 23 to38, talked up market-traded securities online to followers without disclosing that they planned to sell once prices rose.
Extravagant lifestyles
They also posted social media photos of their extravagant lifestyles, and promoted themselves online as successful traders, between January 2020 and April 2022.
Each accused had over 100,000 Twitter followers, and ran an online community for stock traders called Atlas Trading.
Criminal and civil charges of conspiracy to commit securities fraud were filed in the US District Court for the Southern District of Texas yesterday (14 December).
The crimes carry a maximum of 25 years in prison.
The US Securities and Exchange Commission (SEC) and the Department of Justice (DoJ), which jointly announced the charges, also said that seven of the men had been charged with other financial crimes in the alleged 'pump-and-dump' scheme.
False information
Prosecutors believe they posted false information to artificially inflate stock prices.
Then they sold off shares without telling their followers.
"Financial crimes like securities fraud may not be violent, but they certainly are not victimless," said FBI Special Agent in Charge James Smith.