Pump And Dump Schemes Are Now Legal!
Source: YouTube · Patrick Boyle · published Jul 20, 2024 · 21:24
A Texas court dismissed securities fraud charges against eight influencers 2:42, effectively making pump and dump schemes legal according to the ruling.
Key Takeaways:
• The "Goblin Gang" influencers were accused of making $114 million through social media hype of penny stocks 0:44
• The court dismissed charges because victims didn't directly surrender property to the fraudsters 7:53
• The ruling relied on Supreme Court cases limiting fraud to traditional property rights 9:38
• Professor Guan argues this contradicts established securities law and the "Fraud on The Market Theory" 10:57
• The government has filed an appeal, potentially limiting the ruling's precedent 16:40
The video humorously concludes that pump and dumps are now legal if you don't think about harming your victims 20:05.
Sources:
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First 800 characters of the transcript
Back in December 2022 I covered the story
of eight US based social media influencers charged with conspiracy to commit securities
fraud for a social media-based “pump and dump” scheme. One of them appears to have done
some rapping which is why I covered the story. The influencers had ripped jeans, tattoos, McLaren
cars, those watches that online scammers always wear and contrasting facial hair. They had
a YouTube channel called “The Goblin Gang” which claimed to show you what it’s like to be
a multi-millionaire day trader and a Podcast called “Pennies – Going in Raw” where I imagine
they discussed DCF models and stock valuation methods (I haven’t actually listened to it –
I’m not really interested in that stuff) But on all their YouTube thumbnails they had their
mouths wide open –…