Authorities saidthat in January 2013 Craig created Twitter accounts that appeared to belong to the influential short-selling firms Muddy Waters Research and Citron Research, carrying the handles @Mudd1Waters and @citronresearc and the logos of both companies.
Craig allegedly then falsely tweeted that technology company Audience and biopharmaceutical company Sarepta Therapeutics faced federal investigations, driving down their share prices by a respective 28% and 16%.
Thereafter, Craig used his girlfriend’s brokerage account to buy the companies’ shares at depressed prices, hoping to sell them later after they rebounded, authorities said.
The US justice department said the tweets cost shareholders about $1.6m of losses.
Nonetheless, the SEC said Craig’s effort to profit from big price swings proved “largely unsuccessful”.
Fake Twitter accounts of known short sellers is pretty goo actually. But then the stupidity. You are supposed, when rigging markets like this, to make money both ways. Go short, take the profit, and as you know it’s a scam, use the profit to go long.
But then Scots and money, eh?