U.S. SEC obtains asset freeze to halt alleged penny stock scheme on Twitter
Information about U.S. SEC obtains asset freeze to halt alleged penny stock scheme on Twitter
Kevin David Scam or Legit
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 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://bit.ly/3bgJua1.
“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 …