SEC sues Musk for financial fraud
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Musk is being sued by the SEC for failing to timely disclose his acquisition of Twitter stock, allegedly to take financial advantage of it.
The SEC prosecutes: “It's financial fraud”
The Tesla CEO has been under investigation for 2 years by the Security and Exchange Commission (SEC), the U.S. authority supervising the stock markets. Musk is now sued for failing to notify the SEC of his 44 billion dollars acquisition of Twitter (now X) operations, which happened in April 2022. Authorities claim that Musk waited 11 days to report the purchase, allowing him to buy a substantial amount of shares - equivalent to 5% - at an artificial low price, ultimately saving 150 million dollars to say the least. If investors knew about Musk’s operation, Twitter’s shares would have risen.
Musk's defence: unfounded accusations
Last month, the SEC told the entrepreneur that its investigation was close to an end and issued an ultimatum: pay a fine within 48h or face legal action for financial fraud on multiple counts. Alex Spiro, Musk’s lawyer, expressed his negative feelings towards the issue: "Today's action is an admission by the SEC that (...) they cannot bring an actual case - because Mr Musk has done nothing wrong and everyone sees this sham for what it is."
Musk to lead DOGE, by Trump's side
The announcement of the trial comes just five days before Trump’s inauguration. Musk, who has been a prominent presence by the President-elect's side, especially after November 5th, participated in selecting ministers and staff of the new administration. Starting from Mon. 20th, Elon Musk will co-lead with Vivek Ramaswamy the newly created Department of Government Efficiency, recalling Trump’s favorite cryptocurrency DOGE.
The SEC prosecutes: “It's financial fraud”
The Tesla CEO has been under investigation for 2 years by the Security and Exchange Commission (SEC), the U.S. authority supervising the stock markets. Musk is now sued for failing to notify the SEC of his 44 billion dollars acquisition of Twitter (now X) operations, which happened in April 2022. Authorities claim that Musk waited 11 days to report the purchase, allowing him to buy a substantial amount of shares - equivalent to 5% - at an artificial low price, ultimately saving 150 million dollars to say the least. If investors knew about Musk’s operation, Twitter’s shares would have risen.
Musk's defence: unfounded accusations
Last month, the SEC told the entrepreneur that its investigation was close to an end and issued an ultimatum: pay a fine within 48h or face legal action for financial fraud on multiple counts. Alex Spiro, Musk’s lawyer, expressed his negative feelings towards the issue: "Today's action is an admission by the SEC that (...) they cannot bring an actual case - because Mr Musk has done nothing wrong and everyone sees this sham for what it is."
Musk to lead DOGE, by Trump's side
The announcement of the trial comes just five days before Trump’s inauguration. Musk, who has been a prominent presence by the President-elect's side, especially after November 5th, participated in selecting ministers and staff of the new administration. Starting from Mon. 20th, Elon Musk will co-lead with Vivek Ramaswamy the newly created Department of Government Efficiency, recalling Trump’s favorite cryptocurrency DOGE.