The U.S. Securities and Exchange Commission (SEC) has filed charges against 8 individuals in a $100 million stock manipulation scheme which was being promoted by them on Discord and Twitter. "The SEC's complaint, filed in the U.S. District Court for the Southern District of Texas, seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties against each defendant, as well as a penny stock bar against Hrvatin (one of the accused). Criminal charges against all eight individuals also were filed in a parallel action brought by the Department of Justice’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas," the SEC said. What the SEC's investigation found: For years, the eight defendants promoted themselves as "trustworthy stock-picking gurus. In reality, they are (just) seasoned stock manipulators." Here's what they did according to the SEC: First, they identified certain stocks and acquired substantial positions in them. Then they recommended the stock as a good investment to their followers on Twitter, podcasts, or other trading forums. They encouraged their followers to buy the stock, often claiming that they bought this stock and also intended to buy it in the future. When the stock price rose after their recommendation, they sold it and made a profit. Why it matters: It is important to note that more and more 'financial influencers' are springing up in India as well. The recommendations given by these individuals impact the financial decisions of many people. For instance, in India 6 people were accused of using Telegram…
