Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. SEC obtains asset freeze to halt alleged penny stock scheme on Twitter

Stock MarketsOct 26, 2021 06:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The Twitter logo is displayed on a screen on the floor of the New York Stock Exchange in New York City, U.S., September 28, 2016. REUTERS/Brendan McDermid 2/2

By Katanga Johnson and Kanishka Singh

(Reuters) -The U.S. Securities and Exchange Commission (SEC) said on Tuesday it obtained an injunction and asset freeze against a man behind a popular Twitter (NYSE:TWTR) account that promoted the trading of penny stocks before selling them at inflated prices.

The SEC alleges that since at least December 2019, Steven Gallagher, 50, of Maumee, Ohio, manipulated stocks by sending thousands of tweets using his handle @AlexDelarge6553 to encourage his numerous followers to buy stocks in which Gallagher had secretly amassed holdings, according to the complaint https://

"The complaint alleges that Gallagher used his followers for his own financial gain, tweeting out false advice to pump up the price of stocks he owned, so he could sell for a profit," said Richard Best, director of the SEC's New York Regional Office. "This case is a reminder that investors should be wary of taking financial advice from unverified sources on Twitter and other social media platforms."

The SEC said it has imposed a permanent injunction, disgorgement, prejudgment interest, civil penalties and a freezing of Gallagher's assets.

A representative of Gallagher could not immediately be reached for comment.

The U.S. Department of Justice also said in a related charge that Gallagher had been arrested for additional violations, including wire fraud and market manipulation, after he gained over 70,000 followers related to the same pump-and-dump scheme. The charge also specified that Gallagher earned over $1 million in profit.

The SEC's charges come after the agency in February suspended trading in the securities of 15 companies because of "questionable trading and social media activity."

The top markets watchdog has also pushed to address soaring interest by retail investors fueled by social media platforms, most notably in the January surge and subsequent plunge of GameStop Corp (NYSE:GME)'s share price.

U.S. SEC obtains asset freeze to halt alleged penny stock scheme on Twitter
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Will Stewart
Will Stewart Oct 26, 2021 6:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why doesn't SEC investigate blockchain.com they Keep everybodys' money, the minute they ask for it back. They "say" the Account was compromised...each-and-every time.
Will Stewart
Will Stewart Oct 26, 2021 6:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
....Like Every, every time.
Will Stewart
Will Stewart Oct 26, 2021 6:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Or, they give you Endless runaround until you give up. They are the 'textbook' Fraudulent company, if there ever was one
Will Stewart
Will Stewart Oct 26, 2021 6:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SEC is failing Us.
Will Stewart
Will Stewart Oct 26, 2021 6:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
...I Wish there was One Single Person, who ever got their money back, from that company, blockchain.com. Good Luck finding Even One.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email