According to the SEC, MMTLP is one of the tickers Atlas Trading was pumping.
Regulators are saying eight members of the trading group took advantage of novice traders by promoting false information on certain tickers to increase buying power and then later taking profits while still pushing traders to buy.
Many retail investors are more concerned about the SEC not taking other serious matters into their own hands, such as market manipulation conducted by hedge funds and market makers for example.
It seems when retail traders are able to profit from driving price up in a security, the SEC is quick to sniff out anomalies.
But when big hedge funds use the media to manipulate and influence public opinion, dump shares, trade puts, and downgrade stock prices, the SEC is nowhere in sight.
While promoting false information is still wrong, Meta Materials (MMTLP) seems to have a strong community behind it though, with many protesting against FINRA halting it a week prior to its spinoff.
Here’s the latest MMTLP stock news.
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Meta Materials Named in Lawsuit
The group used the then-upcoming merger with Meta Materials as a catalyst for their followers to buy in.
Hennessey claimed that Meta Materials would potentially partner with Tesla (TSLA) and had coronavirus-fighting applications in store.
He noted to his followers that the company had a “10-billion-dollar MARKET CAP POTENTIAL.”
This of course was a way to promote buying shares of the company for the leaders to profit from.
Based on the lawsuit, the eight individuals will face disgorgement of all their illegal gains and pay civil penalties.
They may also be banned from trading securities in the future and face jail time, as criminal charges have been filed against them, per the SEC.
Did FINRA halt MMTLP stock due to these whereabouts?
And is it fair that shareholders who weren’t part of the fiasco were halted without warning?
Leave Your Thoughts Below
Is the MMTLP community completely separate from what went on with Atlas Trading Group?
Were you invested in the security?
Leave your thoughts in the comment section below.
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