US charges 8 in social media ‘pump-and-dump’ stock scheme
By MATT OTT
AP Business Writer
WASHINGTON (AP) – The government has charged eight men of earning more than $100 million in stock market profits by manipulating their novice-investor followers on social media.
The Justice Department and the Securities and Exchange Commission said that since at least early 2020, the influencers promoted themselves as successful traders on Twitter and in Discord chat rooms and encouraged hundreds of thousands of their followers to buy certain stocks.
When prices or volumes of the promoted stocks would rise, the influencers allegedly regularly sold their shares without ever having disclosed their plan to sell.
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12/14/2022 2:53:44 PM (GMT -6:00)