Photo: Instagram/Elon Musk/true_gentlemans
“Neither celebrity status, nor reputation as a technological innovator provide an exemption from the federal securities laws.”
This is how Stephanie Avakian, co-director of the Securities and Exchange Commission’s (SEC) enforcement division commenced the press conference through which on Thursday the watchdog announced it is taking Tesla CEO Elon Musk to court.
Simply put, the SEC is accusing Musk of having committed securities fraud while tweeting on August 7 “Am considering taking Tesla private at $420. Funding secured.”
Avakian said “Musk’s statements were false and misleading because they lacked any basis and fact,” a reality Musk himself somewhat admitted to in a later post. On August 13, he told the world how he left from an earlier meeting with representatives of the Saudi Arabian sovereign wealth fund with the impression - but no proof - that “it was just a matter of getting the process moving.”
Because Musk’s initial tweet had an effect on the Tesla stock -prices jumped by nearly 9 percent - the SEC stepped in to investigate.
Now that the investigation is over and justice is to be served in court, the SEC is asking judges to kill Elon Musk as a credible public company figure.
Among the things the SEC requests, Avakian mentioned an injunction preventing the billionaire from engaging in similar behavior in the future, civil penalties and disgorgement of any ill-gotten gains.
But most importantly, the SEC wants the court to bar Elon Musk from serving as officer or director of a public company.
All of the above are usual measures taken against those committing securities fraud.
In a statement released to CNBC, Musk denied any wrongdoing and said he has always had the best interests of Tesla in mind.
“This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."
Simply put, the SEC is accusing Musk of having committed securities fraud while tweeting on August 7 “Am considering taking Tesla private at $420. Funding secured.”
Avakian said “Musk’s statements were false and misleading because they lacked any basis and fact,” a reality Musk himself somewhat admitted to in a later post. On August 13, he told the world how he left from an earlier meeting with representatives of the Saudi Arabian sovereign wealth fund with the impression - but no proof - that “it was just a matter of getting the process moving.”
Because Musk’s initial tweet had an effect on the Tesla stock -prices jumped by nearly 9 percent - the SEC stepped in to investigate.
Now that the investigation is over and justice is to be served in court, the SEC is asking judges to kill Elon Musk as a credible public company figure.
Among the things the SEC requests, Avakian mentioned an injunction preventing the billionaire from engaging in similar behavior in the future, civil penalties and disgorgement of any ill-gotten gains.
But most importantly, the SEC wants the court to bar Elon Musk from serving as officer or director of a public company.
All of the above are usual measures taken against those committing securities fraud.
In a statement released to CNBC, Musk denied any wrongdoing and said he has always had the best interests of Tesla in mind.
“This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."
Google News