Bell Buckle Holdings (BLLB)

[oilin07]

SEC Enforcement Action Involving Social Media and Market Manipulation

The SEC has charged individuals for committing securities fraud through the use of social media.

In a recent Enforcement action, SEC v. Craig, the SEC accused an individual of manipulating the share prices of two publicly traded companies by tweeting false and misleading information. The defendant allegedly tweeted rumors that federal law enforcement was investigating a technology company for fraud, and that a biopharmaceutical company had tainted drug trial results and a federal government agency seized its papers. The SEC asserted that these deceptive tweets were made from Twitter accounts mimicking established securities research firms. The hoaxes allegedly caused investors to lose more than $1.5 million.