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Scottish Man Causes #StockMarket Fall Via Fake #Tweets

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The fraudulent claims of a Scottish man on Twitter back in 2013 have landed him in trouble with US federal law after the remarks were detrimental to two company's stock prices.

The man in question, 62-yr old James Alan Craig from Dunragit, posed as two separate and influential short-selling companies on the site, complete with logos and all, in order to dupe users that technology company Audience Inc and pharmaceutical company Sarepta Therapeutics Inc were facing federal investigations. As an apparent direct result from this news, the companies' share prices fell by 28% and 16% respectively, meaning an approximate $1.6m in losses for shareholders.

The Twitter accounts he controlled,  @Mudd1Waters and @citronresearc, were masquerading as Muddy Waters Research and Citron Research that are both equity research companies, and due to his misinformation and the subsequent price drop, he was able to purchase stocks at depressed prices with his girlfriend's brokerage account.

The man has been indicted by a San Francisco federal jury for one count of securities fraud in the latest effort by US authorities to crack down on social media stock market fraud. The charges could lead to the hapless criminal being extradited and imprisoned.



SMF rookie, fresh out of academia, looking forward to more creative ventures. With a love of current affairs, green tea and an ever insatiable wanderlust, Katie is ready to have her voice heard. Follow her @KatieAtSMF


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Scottish Man Causes #StockMarket Fall Via Fake #Tweets Reviewed by Katie Gascoyne on Saturday, November 07, 2015 Rating: 5

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