On Tuesday, a inventory dealer named Steven Gallagher was arrested and charged in connection along with his alleged function in a pump-and-dump scheme that concerned selling penny shares on Twitter. As a Twitter consumer, Gallagher goes by the identify “Alexander Delarge 655321,” after Alexander DeLarge, the primary character from the sci-fi movie A Clockwork Orange, and a personality’s jail quantity within the movie.
In a criticism in federal court docket, Gallagher was charged with securities fraud, wire fraud and market manipulation. The criticism alleges Gallagher used his Twitter account to hype penny shares and unfold deceptive details about his buying and selling in these shares with the aim of directing his Twitter followers to purchase the shares and drive up their costs.
The criticism additional alleges that Gallagher earned greater than $1 million by secretly promoting these penny shares, which he’d already purchased. The announcement alleges Gallagher carried out the pump-and-dump scheme again and again to defraud particular person retail traders.
“As alleged, Steven Gallagher introduced old-school boiler room ways to the Twitter age, and operated a social media pump-and-dump rip-off that defrauded extraordinary traders, all in order that he may make over $1 million in earnings,” US Legal professional Damian Williams stated within the announcement.
The arrest occurred Tuesday in Ohio, the place Gallagher lives.
https://www.cnet.com/tech/twitter-user-alex-delarge-charged-in-pump-and-dump-scheme/ | Twitter consumer ‘Alex DeLarge’ charged in pump-and-dump scheme