The U.S. Securities & Exchange Commission published a statement on a jury verdict in the U.S. District Court for the Southern District of New York finding Steven M. Gallagher liable for securities fraud and manipulative trading following a nine-day trial. The SEC said Gallagher used his Twitter account between December 2019 and October 2021 to encourage followers, including retail investors, to buy stocks in which he had already built positions, then sold those stocks while continuing to recommend purchases without disclosing his sales. The conduct involved more than 30 microcap stocks and generated illicit trading profits of over USD 2.6 million. For two stocks, the jury also found manipulative trading through “marking the close”, described as placing end-of-day buy orders above market prices to artificially increase the stock price.
U.S. Securities & Exchange Commission 2025-09-19
U.S. Securities & Exchange Commission highlights jury verdict finding Steven M. Gallagher liable for microcap stock fraud and manipulative trading
The U.S. Securities & Exchange Commission announced a jury verdict finding Steven M. Gallagher liable for securities fraud and manipulative trading. Gallagher used Twitter to promote stocks he owned, selling them without disclosing his actions, generating over USD 2.6 million in illicit profits. The jury also found manipulative trading in two stocks through "marking the close."