- The US Securities and Exchange Commission said on Wednesday,
that eight social media influencers
have been charged in a so-called "pump and dump" scheme.
Alleging, they reaped about $114 million
by using Twitter and Discord to hype certain stocks
to their followers with the intent of dumping them
once their prices had risen.
The individuals charged in the fraud scheme
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.
The eight men allegedly purported
to be successful traders on the social media platforms,
and then used the websites and a podcast to manipulate stocks,
according to prosecutors and the SEC.
Constantinescu, who uses the Twitter handle @MrZackMorris
had posted antagonizing photos and messages
referencing the SEC.
Matlock, who's Twitter account has been suspended,
pleaded not guilty following his arrest on Tuesday,
according to a court filing.
His attorney did not respond immediately
to a request for comment.
The others either could not immediately be reached
or did not respond to requests for comment.