The Securities and Exchange Commission (SEC) has charged Francis Sabo (aka Ricky Bobby) regarding a $100 million securities fraud ploy. The SEC said that charges were “partially settled” while explaining the defendants included several others who allegedly used social media to manipulate shares of securities traded on public exchanges.
Criminal charges against Sabo were also filed by the Criminal Fraud Section of the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of Texas.
The SEC’s complaint claims that since at least January 2020, Sabo promoted himself as a “stock-picking guru” and cultivated a substantial following in the Atlas Trading forum on Discord. The SEC claims that Sabo, like previously charged defendants, purchased certain stocks and then encouraged his substantial social media following to buy those selected stocks by posting price targets or indicating he was buying, holding, or adding to his stock positions.
Allegedly, the pump and dump scheme saw Sabo selling shares while promoting them to generate returns. The SEC alleges that from at least January 2020 through December 2022, Sabo made over $1 million from the stock manipulation scheme.
Sabo is charged with violating the antifraud laws. The SEC’s complaint, filed in the U.S. District Court for the Southern District of Texas, seeks a permanent injunction, disgorgement, prejudgment interest, and civil penalties.
Sabo has consented to be enjoined from future violations of the charged provisions of the federal securities laws, with the amount of monetary remedies to be determined at a later date.
The settlement is subject to court approval. Criminal charges against Sabo were also filed in a parallel action brought by the Criminal Fraud Section of the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of Texas.
