Eight social media influencers have been charged with a $100 million (£81 million) fraud scheme for allegedly using their position to manipulate stock prices.
The young man, who has a combined 1.5 million followers on Twitter, used it alongside messaging platform Discord to advertise himself as a successful trader and encourage his fans to invest in stocks of their choice.
When the prices of these stocks rose, they regularly sold off without disclosing their plans, according to charges filed by the U.S. Securities and Exchange Commission.
This is a process often referred to as “pump and dump”.
Officials said the group’s loyal followers have been fed a “constant diet of misinformation” since at least January 2020, resulting in “almost $100 million in illicit profits.”
While their fans were tricked, the defendants showed off their “luxury lifestyles” online, including taking pictures with their luxury cars, officials claim.
Seven of the men have been charged with securities fraud, and their Twitter handles and whereabouts have been revealed.
• Perry Matlock (@PJ_Matlock) of Texas
• Edward Constantine (@MrZackMorris) of Texas
• Thomas Cooperman (@ohheytommy) in California
• Gary Deel of California (@notoriousalerts)
• Mitchell Hennessey (@Hugh_Henne) of New Jersey
• Stefan Hrvatin (@LadeBackk) in Florida
• John Rybarczyk (@Ultra_Calls) of Texas
Tweets from men regularly urged members of the ‘Goblin Gang’ to buy stocks and contacted followers to ‘get these levels’, with daily ‘game plans’ texted directly to them. was given.
Most of the accounts are still online and tweeted three or four days ago.
An eighth man, Daniel Knight (@DipDeity) of Texas, has been accused of aiding and abetting dubious schemes via a podcast he co-hosted and used to promote many other men as professional traders. was indicted on
It is said that he also worked with them to make deals and regularly profited from them.
Each could face up to 25 years in prison for conspiracy to commit securities fraud and each count of securities fraud.
Constantine also faces up to 10 years in prison if convicted of engaging in illegal financial transactions.
This comes amid a US crackdown on celebrities promoting financial products, including cryptocurrencies.
last month, Instagram star jailed in California An international multi-million dollar scam targeting English Premier League clubs for over 11 years.
a few weeks ago, Kim Kardashian fined and banned from promoting cryptocurrencies for three years To settle federal claims for Instagram posts about EthereumMax assets.
https://news.sky.com/story/influencers-who-promoted-stock-on-social-media-charged-with-100m-fraud-scheme-12768482 Influencer who promoted stocks on social media indicted in $100 million fraud scheme | Science and Technology News