SEC Finally Busts Guy for Manipulating Stocks via Twitter

Long time readers will remember an event almost 3 years ago where someone on Twitter tweeted out false information on Sarepta Therapeutics ($SRPT).   At the time I had no position in the stock, but the blatant manipulative action prompted me to write a post on the subject.

Yesterday, finally, the SEC brought action against James Alan Craig for the illegal behavior.  Ironically, the guy wasn’t even good at profiting from his manipulation, even though he proved to have significant temporary impact on the stocks.

craig_manipulation

What I found interesting reading the complaint was the account of how Craig used other Twitter accounts to correspond with the broader Twitter masses.  Something struck me as familiar as I read this part of the SEC complaint:

craig_other_acct

I was the “other Twitter account!”  I went back and found the tweet that was quoted:

kd_srpt_fraud

Anyway, I found this interesting/humorous/sad.   Interesting because everyone saw this manipulation when it happened, humorous because I was quoted without name in the SEC filing, and sad because it took almost 3 years for the SEC to bring the enforcement action.

Question for my lawyer friends out there: why does it take so long? Just because we’re dealing with an understaffed government agency?

related:  SEC Arrests Needed – SRPT Fake Tweets Edition

full SEC complaint

-KD

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