The Securities and Exchange Commission said a pretzel shop employee committed a $1 million fraud to buy Tesla, GameStop and Nvidia stock, and ended up making $7,000 for his middleman.
The SEC says a fast-food restaurant worker obtained $200,000 in advance credit by making bogus deposits.
Aunt Ann’s employee has accumulated the entire amount in Tesla, Nvidia, GameStop, AMC and other stocks.
His broker took advantage and liquidated the property the next day, making a profit of nearly $7,000.
A fast food restaurant worker tricked his online broker into giving him $200,000 in advance credit, then converted the illicit money into stocks including Tesla, nvidia, GameStopAnd AMC EntertainmentAccording to the Securities and Exchange Commission.
Deontie Gahthori Anthony, 23, was a part-time employee at Auntie Anne’s in North Carolina last summer. On July 1, he applied for a self-directed brokerage account, claiming to make between $25,000 and $50,000 a year while only making about $400 a month, the SEC said in a complaint filed Aug. 25 and seen by the website. Insider.
Anthony linked his trading account to a bank account containing just 9 cents, then initiated unfunded deposits totaling $1 million from July 5-6. The outstanding deposits gave him access to $200,000 in instant credit, which he invested in eight stocks and a stock exchange. The SEC said the July 6 ETF.
The pretzel store worker raised about $85,000 at Apple, $78,000 at GameStop, $22,000 at Nvidia, $13,000 at AMC Entertainment, and $700 at Tesla. And invest another $800 in Cano Health, Electronic Arts, Resolute Forest Products and ETFMG Prime Cyber Security, according to the SEC.
GameStop and AMC both”meme stockthat rose in price In early 2021, retail investors bought them en masse in a bid to punish the short sellers and make huge gains in a matter of days. Tesla and Nvidia also have an enthusiastic fan base that expects the duo to take a big win from the AI revolution. The intense hype helped Almost doubled And more than tripled The stock prices of the automaker and graphics chip company this year.
The broker discovered Anthony’s alleged fraud the next day, frozen his account, and liquidated all his assets. Short-term purchases have proven profitable. The broker made about $7,000 in profit, including about $4,700 on GameStop, $1,600 on Apple, and $800 on Nvidia. The SEC complaint shows that all but one of Anthony’s trades were in the green when his broker cashed in.
Anthony was unable to withdraw any funds before his account was frozen. His deposits were later canceled due to insufficient funds, and he was dismissed from Aunt Ann’s house on 9 July after failing to show up for work. The organizers said he admitted to making deposits and misleading his broker under oath during investigative testimony.
When asked why he made the $1 million in unfunded deposits without having the funds to cover the transactions, Anthony justified his behavior as a “joke” and said he “never thought of it as fraud,” the SEC said.
Anthony attempted to implement what is known as a “free ride” scheme, where a trader makes bogus deposits to access advanced credit, then tries to use that credit to make money and withdraw before his broker grabs and freezes his account, the federal government said. The agency explained.
The SEC said in its complaint that it seeks to prevent Anthony from trading securities without the necessary funds in his account, and to compel him to disclose this incident if he opens a brokerage account in the future.
Insider could not immediately reach Anthony for comment.
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