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Pump and Dump Schemes are Now Totally Legal
Manage episode 430055193 series 2851541
A Texas District Judge Andrew S. Hanen has dismissed all charges against seven social-media influencers the SEC and Justice Department had accused of perpetrating a “stock manipulation scheme” on Twitter and Discord, ruling that the prosecution failed to state an offense in a case alleging securities fraud.
The influencers were accused of securities fraud through a Pump and Dump scheme as they posted on social media that they owned or were buying various penny stocks but did not state that they were selling the stock as their followers bought. In his ruling, Judge Hanen rejected the government’s argument that this constituted a crime and concluded that the defendants “did not deprive investors of their money or property through any misrepresentation.”
Professor Sue Guan Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4857628
SEC Press Release: https://www.sec.gov/newsroom/press-releases/2022-221
Court Opinion: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rmMOgPQgozIw/v0
Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle
Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle on YouTube
The Land That Never Was By David Sinclair: https://amzn.to/4eVC3ED
214 episodes
Manage episode 430055193 series 2851541
A Texas District Judge Andrew S. Hanen has dismissed all charges against seven social-media influencers the SEC and Justice Department had accused of perpetrating a “stock manipulation scheme” on Twitter and Discord, ruling that the prosecution failed to state an offense in a case alleging securities fraud.
The influencers were accused of securities fraud through a Pump and Dump scheme as they posted on social media that they owned or were buying various penny stocks but did not state that they were selling the stock as their followers bought. In his ruling, Judge Hanen rejected the government’s argument that this constituted a crime and concluded that the defendants “did not deprive investors of their money or property through any misrepresentation.”
Professor Sue Guan Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4857628
SEC Press Release: https://www.sec.gov/newsroom/press-releases/2022-221
Court Opinion: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rmMOgPQgozIw/v0
Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle
Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle on YouTube
The Land That Never Was By David Sinclair: https://amzn.to/4eVC3ED
214 episodes
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