False Tweets Cause Market Drop, and SEC Charges

The SEC announced the filing of securities fraud charges against a Scottish trader whose false tweets caused sharp drops in the stock prices of two companies and triggered a trading halt in one of them.

According to the SEC’s complaint filed in federal court in the Northern District of California, James Alan Craig of Dunragit, Scotland, tweeted multiple false statements about ADNC and SRPTon Twitter accounts that he deceptively created to look like the real Twitter accounts of well-known securities research firms. Complaint and screenshots of the tweets at the link.