Skip to content

Corruption Ledger

The Public Ledger of Corruption

  • Home
  • About CL
  • Rumble
  • Video
  • corruption
    • corporate corruption
    • government corruption
    • leaks
    • Misinformation
    • Surveillance
  • cryptocurrency
  • Sanctions Feeds
    • All Sanctions Feeds
    • Canadian Sanctions
    • US Sanctions
  • Toggle search form

Eight Men Indicted for Securities Fraud Scheme Orchestrated Through Twitter and Discord

Posted on December 14, 2022December 16, 2022 By CorruptionLedger No Comments on Eight Men Indicted for Securities Fraud Scheme Orchestrated Through Twitter and Discord
A federal grand jury in the Southern District of Texas returned an indictment that was unsealed yesterday charging eight men with conspiracy to commit securities fraud for a long-running, social media-based “pump and dump” scheme.

According to court documents, Edward Constantinescu, aka Constantin, 38, of Montgomery, Texas; Perry “PJ” Matlock, 38, of The Woodlands, Texas; John Rybarczyk, 32, of Spring, Texas; Gary Deel, 28, of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; Tom Cooperman, 34, of Beverly Hills, California; Mitchell Hennessey, 23, of Hoboken, New Jersey; and, Dan Knight, 23, of Houston, Texas, allegedly engaged in a wide-ranging securities fraud conspiracy in which the defendants used their extensive social media presence on Twitter and Discord to hype interest in particular securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices. From in or around January 2020 to in or around April 2022, the defendants profited at least approximately $114 million from their scheme.

“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”

According to the indictment, the defendants collectively had over 1.5 million followers on Twitter to whom they allegedly disseminated false and misleading information about the securities that they pumped and dumped as part of the charged scheme. In addition to their Twitter presence, the defendants also allegedly ran an online community for individual stock traders called Atlas Trading, which defendants promoted as one of the largest, free online communities in the world for individual stock traders and which had a chatroom called Atlas Trading Discord. The defendants also allegedly used Atlas Trading Discord to disseminate false and misleading information about securities that they pumped and dumped as part of the charged scheme.

“We are committed to protecting the investing public from market manipulation schemes, regardless of how they are carried out,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “As some use advances in technology and social media to prey upon the public, our office will be on the cutting edge of prosecuting this area of fraud.”

According to the indictment, the defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme:

As further alleged in the indictment, the defendants used their social media credibility to maximize their own profits at the expense of their followers, holding themselves out as skilled stock traders by posting pictures showcasing their profits and extravagant lifestyles, and encouraging people to follow them on social media in order to share in their financial gains.

“Corporate fraud remains a priority for the FBI as it victimizes investors and erodes public confidence in the securities markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to identifying, investigating, and pursuing those who seek to undermine the U.S. financial market and investors.”

All defendants are charged with one count of conspiracy to commit securities fraud. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman, and Hennessey are each charged with two counts of securities fraud.

The defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 25 years in prison for conspiracy to commit securities fraud and each charged count of securities fraud. Constantin also faces a maximum penalty of 10 years in prison if convicted of engaging in unlawful monetary transactions. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Houston Field Office is investigating the case.

Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas “Heyward” Carter III for the Southern District of Texas are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-constantinescu-et-al.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

. . . . . . . . . . . . .

  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
corruption Tags:DOJ, Justice.gov

Post navigation

Previous Post: FTX Founder Indicted for Fraud, Money Laundering, and Campaign Finance Offenses
Next Post: China property tycoon Zhang Li arrested on US bribery charge

Related Posts

  • Finance companies and their directors fined for misconduct corruption
  • ABB Ltd to pay over $315 Million: Global Foreign Bribery corruption
  • Aerojet Rocketdyne Whistleblower To Receive $2.61 Million in False Claims Act Settlement corruption
  • Top U.S. court backs WhatsApp suit over Pegasus spyware corruption
  • Justice Department Finds Louisiana Department of Public Safety and Corrections Violates the Constitution By Incarcerating People Beyond Their Release Dates corruption
  • The sanctions smoke screen: ongoing business partnerships the press missed corruption

Comment Cancel reply

  • Glenn Greenwald: Revealed – Mass Media Complicity in “Russian Disinformation” Fraud, w/ Matt Taibbi | SYSTEM UPDATE #30January 30, 2023
  • Reports of drone attacks in Iran and SyriaJanuary 29, 2023
  • AP: Ukraine Corruption Scandal; U.S. likely to OK sending Abrams tanksJanuary 29, 2023
  • Classified documents probe pushes Biden think tank into spotlightJanuary 29, 2023
  • British PM Sunak fires party chairman over tax bill allegationsJanuary 29, 2023
  • North Korea calls U.S. pledge of tanks to Ukraine ‘unethical crime’January 28, 2023
  • Usain Bolt fires business manager over Jamaica fraud caseJanuary 27, 2023
  • Canada’s Supreme Court gives mixed rulings on gun crime penaltiesJanuary 27, 2023
  • China, U.S. spar at WTO meeting over disputesJanuary 27, 2023
  • David J. Miller and Minnesota Independent Cooperative, Inc., Convicted in Multi-Million-Dollar Prescription Drug Diversion SchemeJanuary 27, 2023
  • Philippines to appeal ICC resumption of drug war probe: Thousands deadJanuary 27, 2023
  • Turkey says Sweden complicit in hate crime, NATO talks pointlessJanuary 26, 2023
  • Five Members and Associates of White Supremacist Gang Sentenced to Life in Prison for Racketeering, Kidnapping, and MurderJanuary 26, 2023
  • Justice Department Finds Louisiana Department of Public Safety and Corrections Violates the Constitution By Incarcerating People Beyond Their Release DatesJanuary 25, 2023
  • Four Men Convicted of Engaging in a Child Exploitation EnterpriseJanuary 25, 2023
  • AP: Twitter faces lawsuits over unpaid rent for HQ offices in U.S., UKJanuary 24, 2023
  • U.S. Justice Department sues Google over digital advertising dominanceJanuary 24, 2023
  • Defence minister won’t say whether Canada is willing to send battle tanks to UkraineJanuary 23, 2023
  • Norway detains former top Wagner Group member seeking asylum, Andrey MedvedevJanuary 23, 2023
  • Finance companies and their directors fined for misconductJanuary 23, 2023
  • anti-government resistance
  • corruption
  • crime
  • dimwit crimes
  • economy
  • human rights
  • investigations
  • leaks
  • misinformation & censorship
  • political unrest
  • regulatory
  • sanctions
  • surveillance & privacy
  • war
  • who cares?

Corruption Ledger Follow

The Public ▇▇▇ Ledger of ▇▇▇ Corruption. https://t.co/wkobrEotQR

5amResearch
Corruption Ledger @5amresearch ·
4h

Cryptome content is reliable. Why is their @Twitter account permanently banned, however? https://twitter.com/Cryptome_org @Cryptome_org

Alex @Alex06944477

@MsQuitoSwarm @YouTube This seems to be legit, i read about the CIA-Operation "Aerodynamic" on the heise online german news platform
https://cryptome.org/2016/01/cia-ua-aerodynamic.pdf

Reply on Twitter 1622040205074075652 Retweet on Twitter 1622040205074075652 Like on Twitter 1622040205074075652
Retweet on Twitter Corruption Ledger Retweeted
System Update @systemupdate_ ·
2 Feb

.@RepMTG on protecting whistleblowers like Snowden & Assange:

“When a govt. is trying to stop the truth from being told… that’s something to pay attention to… We have to do everything we can to protect those whistleblowers who are risking their lives to tell the truth.”

Reply on Twitter 1621266228009394179 Retweet on Twitter 1621266228009394179 118 Like on Twitter 1621266228009394179 485
Retweet on Twitter Corruption Ledger Retweeted
Corruption Ledger @5amresearch ·
31 Jan

The most uplifting news in ages: #France brings new meaning to "Power to the People" - unionized energy workers give free power to low income people, cut off electricity for the powerful. #vivelafrance https://www.france24.com/en/europe/20230127-robin-hood-energy-strikers-give-free-power-to-french-schools-hospitals-low-income-homes

Reply on Twitter 1620285867926622208 Retweet on Twitter 1620285867926622208 3 Like on Twitter 1620285867926622208
Corruption Ledger @5amresearch ·
31 Jan

The most uplifting news in ages: #France brings new meaning to "Power to the People" - unionized energy workers give free power to low income people, cut off electricity for the powerful. #vivelafrance https://www.france24.com/en/europe/20230127-robin-hood-energy-strikers-give-free-power-to-french-schools-hospitals-low-income-homes

Reply on Twitter 1620285867926622208 Retweet on Twitter 1620285867926622208 3 Like on Twitter 1620285867926622208
Load More
  • UK government webinar on Russia trade sanctions & commercial services
    EU Sanctions - UK 1 day ago
  • US designates international sanctions evasion network
    EU Sanctions - UK 1 day ago
  • Security Council ISIL (Da'esh) and Al-Qaida Sanctions Committee Amends 29 Entries to Its Sancti...
    UN.org 2 days ago
  • Canada Amends Myanmar Sanctions: 6 Individuals Targeted and New Prohibition on Aviation Fuel
    Baker Mckenzie - Canada 2 days ago
  • Oil Price Cap Update: Refined Products
    OFSI 2 days ago
  • United States: Government Designates Russian Proxy Wagner Group as a Significant Transnational Crimi...
    Sanctions – Global Compliance News 2 days ago
  • Ukraine introduces a new set of sanctions against Russian and Belarusian companies
    Baker McKenzie UK 2 days ago
  • United States: OFAC issues amended Russia-related General Licenses and related FAQs
    Sanctions – Global Compliance News 2 days ago
  • Oil broker arrested over supply of 18,000 tonnes of diesel to North Korea
    EU Sanctions - UK 3 days ago
  • Switzerland implements the 9th package of EU sanctions against Russia
    Baker Mckenzie US 3 days ago
  • Statement by Minister Ng on U.S. request for dispute settlement panel on tariff rate quotas for Cana...
    Canada.ca 4 days ago
  • UK, US & Canada impose sanctions to mark anniversary of Myanmar coup
    EU Sanctions - UK 4 days ago
  • US Government Designates Russian Proxy Wagner Group as a Significant Transnational Criminal Organiza...
    Baker McKenzie UK 5 days ago
  • UK Court judgment on the impact of sanctions on litigation / judgments involving designated persons;...
    EU Sanctions - UK 5 days ago
  • Japan introduces further sanctions against Russia
    Baker Mckenzie US 5 days ago
  • AP: Ukraine Corruption Scandal; U.S. likely to OK sending Abrams tanks
    JapanToday 6 days ago
  • Classified documents probe pushes Biden think tank into spotlight
    JapanToday 6 days ago
  • British PM Sunak fires party chairman over tax bill allegations
    JapanToday 6 days ago
  • North Korea calls U.S. pledge of tanks to Ukraine 'unethical crime'
    JapanToday 7 days ago
  • OFAC Issues Amended Russia-Related General Licenses and Related FAQs
    Baker McKenzie UK 7 days ago
1
2
3
…
Next

–

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Longtime Trump CFO Weisselberg gets 5 months in jail in tax fraud case corruption
  • Sanctions Updates: Russia corruption
  • Billions Keep Flowing to Afghanistan, State Dept. Blocks Audit to Disclose Where Money is Going corporate corruption
  • Governments ill-Informed on how to Inject Covid-19 Vaccine misinformation & censorship
  • Alabama Man Indicted for Violating U.S. Sanctions Against Iran sanctions
  • North Korean National Mun Chol Myong Sentenced in the U.S. for Money Laundering to acquire goods for North Korea sanctions

Copyright © 2022 Corruption Ledger. This web site contains no ads.