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WASHINGTON – The U.S. Securities and Exchange Commission said Monday it has sued a California trader for an alleged fraud scheme in which he spread false information about a dilapidated 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 Monday in a complaint.
Fassari’s lawyer said he denied any wrongdoing.
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The trader made about 120 tweets from December 9 to 21 with false and misleading statements about the stock, which caused the price to rise by more than 4,000%, the SEC said. Fassari later sold all his shares between December 10 and 16 and allegedly booked $ 929,000 in profit from the scheme.
The U.S. Securities and Exchange Commission said Monday it has indicted a California trader on an alleged fraud scheme in which he spread false information about a dilapidated company on Twitter. (Photo by Mark Wilson / Getty Images)
The SEC suspended trading in Arcis on March 2. Since February, the agency has suspended trading of more than a dozen bonds after volatile trading this year in GameStop Corp and other darlings on social media that have seen an increase in interest from retail investors.
‘The SEC acted swiftly to bring this action. It appears that Mr. Fassari has been hit by the GameStop, Robinhood, Reddit controversy, ‘Fassari’s lawyer David Wiechert said in an email.
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The SEC said it had obtained a freezing point for emergency assets and other emergency relief against Fassari.