The U.S. Securities and Exchange Commission (SEC) on Wednesday said it has charged eight individuals in a $100 million securities fraud scheme, alleging they used Twitter and Discord to manipulate stocks.
The SEC alleged that seven of the defendants purported to be successful traders on the social media platforms. The eighth individual was charged with aiding and abetting the scheme with his podcast.
“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth Polite of the Justice Department’s Criminal Division.
The individuals charged were Texas residents Edward Constantinescu, Perry Matlock, John Rybarczyk and Dan Knight, along with California residents Gary Deel and Tom Cooperman, Stefan Hrvatin of Miami and Mitchell Hennessey of Hoboken, New Jersey.
Matlock pleaded not guilty following his arrest on Tuesday, according to a court filing. His attorney did not respond immediately to a request for comment.
Rybarczyk and Deel did not respond immediately to requests for comment. The others could not immediately be reached.
