Scottish Used Twitter for Stock Market ScamAdded: Tuesday, November 17th, 2015
Category: Recent Headlines Involving File Sharing > Ridiculous Criminal Trials
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A federal grand jury in San Francisco indicted a Scottish resident for using a microblog to make bogus claims that destroyed the stock prices of a couple of firms in order to profit from illegal trading.
A Scottish man, aged 62, was charged with securities fraud, with the US Securities and Exchange Commission filing a similar charge in a related civil case. It was another effort by the American authorities to prevent scammers from using social media to commit stock market fraud. It was reported that the suspect’s whereabouts could not immediately be determined and it was unknown whether he had hired a lawyer.
According to the authorities, almost 3 years ago, this individual created Twitter accounts that appeared to belong to the influential short-selling companies Muddy Waters Research and Citron Research, giving them relevant names and the logos of both companies. Moreover, it was alleged that he then falsely tweeted that tech firm Audience and biopharmaceutical firm Sarepta Therapeutics faced federal investigations, which caused panic among investors and drove down the share prices of those companies by a respective 28% and 16%. After this, the man used a brokerage account registered on another name to purchase those companies’ shares at lower prices in order to later sell them after the world realized the news was false.
According to the Justice Department of the United States, his tweets cost shareholders about $1.6m of losses. Even despite this, the SEC found that Craig’s attempt to profit from big price swings turned out unsuccessful. In the meantime, Muddy Waters and Citron announced at the time of publishing that those tweets were not theirs. The authorities also said that Audience, Sarepta and Twitter were not accused of any wrongdoing.
Tuesday, November 17th, 2015No comments
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