PanamaTimes

Friday, Jul 26, 2024

Influencers who promoted stock on social media charged with $100m fraud scheme

Influencers who promoted stock on social media charged with $100m fraud scheme

While their fans were being duped on Twitter and Discord, the accused showcased their "extravagant lifestyles" online, including posing in photos with luxury cars, authorities have alleged.

Eight social media influencers who allegedly used their status to manipulate stock prices have been charged in a $100m (£81m) fraud scheme.

The young men had a combined following of 1.5 million people on Twitter, and used it alongside messaging platform Discord to promote themselves as successful traders and encourage their fans to invest in selected shares.

According to charges brought by the US Securities and Exchange Commission, when the price of those shares rose, they would regularly sell them off without ever disclosing their plans.

It's a process often referred to as "pump and dump".

Authorities said the group's loyal followers were fed "a steady diet of misinformation" since at least January 2020, "which resulted in fraudulent profits of approximately $100m".

While their fans were being duped, the accused showcased their "extravagant lifestyles" online, including posing in photos with luxury cars, authorities alleged.



Seven of the men have been charged with securities fraud, and their Twitter handles were revealed alongside their names and states of residence:

• Perry Matlock (@PJ_Matlock) of Texas

• Edward Constantin (@MrZackMorris) of Texas

• Thomas Cooperman (@ohheytommy) of California

• Gary Deel (@notoriousalerts) of California

• Mitchell Hennessey (@Hugh_Henne) of New Jersey

• Stefan Hrvatin (@LadeBackk) of Florida

• John Rybarczyk (@Ultra_Calls) of Texas

Tweets from the men regularly encouraged members of the "Goblin Gang" to purchase stock, inviting followers to contact them to "get these levels" and the daily "game plan" texted straight to them.

Most of the accounts are still online and were tweeting as recently as three or four days ago.



The eighth man, Daniel Knight (@DipDeity) of Texas, has been charged with aiding and abetting the alleged scheme, including via a podcast he co-hosted and used to promote many of the other men as expert traders.

He is said to have also traded in concert with them and regularly profited from doing so.

Each could face up to 25 years in jail for conspiracy to commit securities fraud and each count of securities fraud.

Constantin also faces a maximum term of 10 years if convicted of engaging in unlawful monetary transactions.


It comes amid a US crackdown on high-profile people who promote financial products, including cryptocurrency.

Last month, an Instagram star was jailed in California for more than 11 years over an international, multi-million dollar scam which targeted an English Premier League club.

Weeks earlier, Kim Kardashian was fined and banned from promoting crypto for three years to settle federal charges over an Instagram post about the EthereumMax asset.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
US Supreme Court Overturns Obstruction Charges Against January 6 Rioters
US Voters Prefer Biden's Democracy Approach, Trump's Economy Plan: Report
Attempted Coup in Bolivia: President Urges Public Mobilization
Top-Secret US Underwater Drone 'Manta Ray' Revealed on Google Maps
United States Bans Kaspersky Antivirus
Inside El Salvador’s 40,000 Inmate Mega-Prison
Toyota, Mazda, Honda, and Suzuki have committed fraud; falsified safety test results
El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
×