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WASHINGTON – The U.S. Securities and Exchange Commission said on Monday that it accused a California trader of an alleged fraud scheme in which he spread false information about a defunct company on Twitter.
Andrew L. Fassari, or @OCMillionaire on Twitter, tweeted false statements about Arcis Resources Corporation during December 2020, shortly after buying more than 41 million shares, the SEC said in an unsealed complaint on Monday.
Fassari’s lawyer said he denied any wrongdoing.
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The trader made approximately 120 tweets from 9 to 21 December with false and misleading statements about the shares, causing their price to rise by more than 4,000%, the SEC said. Later, Fassari sold all of his shares between December 10 and 16, accounting for $ 929,000 in profits under the scheme, according to the allegations.
The U.S. Securities and Exchange Commission said on Monday that it accused a California trader of an alleged fraud scheme in which he spread false information about an extinct company on Twitter. (Photo by Mark Wilson / Getty Images)
The SEC suspended Arcis trading on March 2. Since February, the agency has suspended trading on more than a dozen securities following the volatility of trading this year at GameStop Corp and other social media darlings who have seen an increase in interest from retail investors.
“The SEC acted quickly in bringing this action. It looks like Fassari was hit by the GameStop, Robinhood and Reddit controversy, ”said Fassari’s lawyer, David Wiechert, in an emailed statement.
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The SEC said it obtained an emergency asset freeze and other emergency measures against Fassari.