{"id":40018,"date":"2021-03-16T10:09:58","date_gmt":"2021-03-16T10:09:58","guid":{"rendered":"http:\/\/34d542c4-047c-4135-b441-6bcddf7db6ca"},"modified":"2021-03-16T10:09:58","modified_gmt":"2021-03-16T10:09:58","slug":"sec-charges-us-trader-for-allegedly-abusing-twitter-to-pump-cannabis-penny-stock-prices","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/sec-charges-us-trader-for-allegedly-abusing-twitter-to-pump-cannabis-penny-stock-prices\/","title":{"rendered":"SEC charges US trader for allegedly abusing Twitter to pump cannabis penny stock prices"},"content":{"rendered":"

The US Securities and Exchange Commission (SEC) has charged a Californian trader for allegedly using Twitter to hype up stocks before dumping them for a profit. <\/p>\n

The charges, unsealed on Monday<\/a> and filed in federal court in the Central District of California on March 2, accuses Andrew Fassari of fraud through the spread of “false and misleading” information.<\/p>\n

SEC has also obtained an emergency asset freeze and other emergency relief.  <\/p>\n

According to SEC, Fassari, under the Twitter handle @OCMillionaire, used the microblogging platform to allegedly spread false tips relating to the stock of a company, Arcis Resources Corporation (ARCS).  <\/p>\n

The Twitter handle is followed by roughly 13,000 users and was active as of March 8, 2021.  <\/p>\n

SEC’s complaint says that on December 9, Fassari began purchasing over 41 million shares in the Nevada company before touting the stock on Twitter.  <\/p>\n

Among the claims, documented in over 120 messages referencing $ARCS, was the expansion of operations, a CEO that had “big plans” for the company, exciting news was on its way, and the idea that investment could be a “life-changer<\/a>.”<\/p>\n

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The US regulator alleges that while the share price rocketed by over 4000%, Fassari then sold his stake and secured profits of over $929,000.<\/p>\n

On December 19, Fassari posted a screenshot to Twitter<\/a> claiming that he had sold for a massive loss. The message read: <\/p>\n

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“$ARCS \/ Sold for a huge loss. I don’t care what anyone says about me. I back up what I say. I take my losses like a man. I don’t blame anyone for this. Everyone received the emails and saw their Twitter. This was either [a] calculated pump or a CEO who did things in the wrong order.” <\/p>\n<\/blockquote>\n

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