London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Influencers who promoted stock on social media charged with $100m fraud scheme

Influencers who promoted stock on social media charged with $100m fraud scheme

While their fans were being duped on Twitter and Discord, the accused showcased their "extravagant lifestyles" online, including posing in photos with luxury cars, authorities have alleged.

Eight social media influencers who allegedly used their status to manipulate stock prices have been charged in a $100m (£81m) fraud scheme.

The young men had a combined following of 1.5 million people on Twitter, and used it alongside messaging platform Discord to promote themselves as successful traders and encourage their fans to invest in selected shares.

According to charges brought by the US Securities and Exchange Commission, when the price of those shares rose, they would regularly sell them off without ever disclosing their plans.

It's a process often referred to as "pump and dump".

Authorities said the group's loyal followers were fed "a steady diet of misinformation" since at least January 2020, "which resulted in fraudulent profits of approximately $100m".

While their fans were being duped, the accused showcased their "extravagant lifestyles" online, including posing in photos with luxury cars, authorities alleged.



Seven of the men have been charged with securities fraud, and their Twitter handles were revealed alongside their names and states of residence:

• Perry Matlock (@PJ_Matlock) of Texas

• Edward Constantin (@MrZackMorris) of Texas

• Thomas Cooperman (@ohheytommy) of California

• Gary Deel (@notoriousalerts) of California

• Mitchell Hennessey (@Hugh_Henne) of New Jersey

• Stefan Hrvatin (@LadeBackk) of Florida

• John Rybarczyk (@Ultra_Calls) of Texas

Tweets from the men regularly encouraged members of the "Goblin Gang" to purchase stock, inviting followers to contact them to "get these levels" and the daily "game plan" texted straight to them.

Most of the accounts are still online and were tweeting as recently as three or four days ago.



The eighth man, Daniel Knight (@DipDeity) of Texas, has been charged with aiding and abetting the alleged scheme, including via a podcast he co-hosted and used to promote many of the other men as expert traders.

He is said to have also traded in concert with them and regularly profited from doing so.

Each could face up to 25 years in jail for conspiracy to commit securities fraud and each count of securities fraud.

Constantin also faces a maximum term of 10 years if convicted of engaging in unlawful monetary transactions.


It comes amid a US crackdown on high-profile people who promote financial products, including cryptocurrency.

Last month, an Instagram star was jailed in California for more than 11 years over an international, multi-million dollar scam which targeted an English Premier League club.

Weeks earlier, Kim Kardashian was fined and banned from promoting crypto for three years to settle federal charges over an Instagram post about the EthereumMax asset.

Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×