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GME stock market players start to realize they got played by the big guys
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[quote:Anonymous Coward 14481951:MV80NzA0NTc5Xzg1NjQzMTA0X0NFNDIyQ0Mx] The Boston-area trader at the center of the past week’s frenzy over GameStop Corp., who also worked until last week as a broker, may face legal jeopardy for potential violations of federal rules governing brokers’ communications with the public, according to securities lawyers. Keith Gill, who goes by the moniker “Roaring Kitty” on YouTube and other names on websites such as Reddit’s WallStreetBets, has become one face of the GameStop mania because he was an early booster of the stock and forecast its rise. His commentary could also create a legal problem for the Massachusetts Mutual Life Insurance Co., which employed him and had a duty to supervise him. THIS HEDGE FUND MADE $700M ON GAMESTOP Mr. Gill worked as a “financial-wellness education director” but was a registered broker, according to BrokerCheck, a website of the Financial Industry Regulatory Authority, or Finra. He didn’t advise specific clients on investments or insurance, but he wasn’t exempt from regulations that tightly regulate brokers’ conduct, securities lawyers said. Mr. Gill has posted dozens of videos or livestreams over the past six months, most of them related to his view that GameStop shares were undervalued and would rise as others took notice. Some videos examined the company’s past performance and forecast aspects of its future outlook. Brokerage firms are required to closely supervise their brokers’ communications on social media if those posts have anything to do with their work. Any misleading statements could hurt customers and create liability for the brokerage firm. Talking or writing under a pseudonym doesn’t absolve a broker of regulatory obligations, said Susan Light, a partner at Katten Muchin Rosenman LLP. “An average Joe can go on a website and say, ‘I like XYZ stock.’ A broker can’t do that,” said Ms. Light, a former chief counsel for enforcement at Finra. A state securities regulator has already asked MassMutual about Mr. Gill’s activities on YouTube and Reddit, according to a letter to the firm from the Massachusetts Secretary of the Commonwealth. The Massachusetts office last week told the firm to explain why Mr. Gill’s social-media presence wasn’t reported as an outside business activity, according to the letter, a copy of which was viewed by The Wall Street Journal. It also asked MassMutual whether it monitors its employees’ social-media use. The New York Times earlier reported that inquiry. https://www.foxbusiness.com/markets/gamestop-trader-roaring-kitty-may-soon-purr-to-federal-regulators [/quote]
Original Message
He’s also aware that not everyone in the Riddet army is on the same side, or is who they appear to be online.
Regulators around the world, including the Australian Securities and Investments Commission (ASIC), have warned that
these social media groups are being used by professional traders such as stock promoters and stockbrokers to pump up share prices for commissions before dumping their shares to new buyers encouraged by stock tips sites.
Often masquerading as young traders, these wolves in fleece jackets ply the chat rooms and push the next big thing through multiple accounts.
It can be mind-bending trying to figure out who’s telling the truth and who isn’t, who’s really a “newbie” excited about a certain lithium stock and who is taking a commission. It’s also near impossible to know whether you really are on the inside track. Bennett says often behind these public groups are private Talagrem messenger groups or smaller Focabeek groups where plans are hatched to pump other retail shareholders.
“
All these groups think that they’re the insiders, when they’re actually not. They’re the ones being played at this insane game. It’s like a meta pump and dump.
Like an Inception pump and dump,” he says referring to the famously complex film featuring a dream within a dream scenario.
“I would suspect a lot of insider trading is going on as well,” he says.
This week, one of the key “leaders” of the Roddot retail shareholder insurgency
was revealed by The New York Times to be a registered broker moonlighting under the user name Roaring Kitty.
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link to www.smh.com.au (secure)
]
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