by Mike Masnick
Tue, Jan 11th 2011 8:29am
We're all familiar with stock market pump and dump scams that have been around forever, and often show up via spam, but what happens when someone famous gets in on the game. Apparently, rapper 50 Cent started pumping the stock symbol of a penny stock for a company that is distributing a new pair of headphones that he's associated with. The stock then surged, increasing the company's value by $50 million. Oddly, when I look at the Twitter account of 50 Cent, I no longer see the Twitter messages in question, which makes me wonder if he realized he might get in trouble for those tweets. Of course, there's nothing wrong with giving stock advice but if he didn't disclose his own association with the company, he could run into serious legal problems from both the SEC and the FTC, who have been looking to crack down on "sponsored" tweets that don't properly disclose a relationship.
If you liked this post, you may also be interested in...
- Creator Behind Crowd-Funded Boardgame That Failed To Materialize Draws Settlement Agreement From FTC
- FTC Gets $1.2 Billion From Drug Company Over 'Pay For Delay' Patent Scam
- FTC Smacks Down Michigan For Trying To Ban Tesla Sales: Didn't We Already Warn You About This?
- Whistleblower Claims Cybersecurity Company Generated Fake Data Breaches To Sell Protective Services
- After FTC, FCC Pressure, AT&T Backs Off Arbitrary Throttling Of 'Unlimited' LTE Users