SEC charges Tesla CEO Elon Musk with fraud

SEC charges Tesla CEO Elon Musk with fraud

The SEC says its investigation is continuing. The full complaint lays out a convincing timeline that alleges a lot of misdirection and misinformation being willfully passed around, all of it revolving around Musk.

But Stephanie Avakian, the SEC's co-director of enforcement, told reporters that Mr Musk knew his statements lacked any basis in fact.

"I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving", Musk wrote at the time.

"Musk's false and misleading public statements and omissions caused significant confusion and disruption in the market for Tesla's stock and resulting harm to investors", the SEC said in its suit, adding that Musk engaged in "manipulative and deceptive practices".

That news sent shares soaring.

For his part, Musk has issued a statement via Tesla stringently denying all allegations, asserting that he believed he had the funding secured at the time of the tweet.

The SEC's suit, filed in federal district court, alleges that Musk violated antifraud provisions of federal laws, and wants a "permanent injunction, disgorgement, civil penalties, and a bar prohibiting Musk from serving as an officer or director of a public company".

On August 24, the company announced it would not become a private company as Musk said it would be too "time-consuming and distracting". Tesla is, of course, a publicly-traded company.

Musk also tweeted that he had "funding secured" for such a deal and that the only step left in the process was getting investor approval. The SEC charge may the door to a massive class-action lawsuit against Tesla itself, the damages could easily be seen to mount into the billions.

If federal investigators find that Musk was intentionally trying to cost them money, he could face criminal charges, securities lawyers have said. He's viewed by many shareholders as the leader and brains behind Tesla's electric vehicle and solar panel operations.

In a lawsuit, the regulator said Musk surprised members of his own team and investors with a series of tweets, starting with the August 7 announcement that he was thinking oftaking Tesla private.

Daniel Sparks owns shares of Tesla.

This understanding was again echoed by SEC leadership and officials in a news conference about the lawsuit.

Spiegel also echoed the concerns of corporate governance experts who have lambasted Tesla's board for being too beholden to a CEO that they are supposed to oversee.

At the time of publication, Tesla shares were down almost 12 percent in after-hours trading. As evidence, the complaint notes that within minutes of the first tweet, the head of investor relations at Tesla texted Musk asking if the tweet was legitimate.



Related Posts

Air Niugini plane comes down in Micronesia lagoon
Papua New Guinea Accident Investigation Commission is now preparing a team to investigate the site of the accident. A cargo plane belonging to Air Niugini went off a runway at Madang Airport in 2013, but there were no casualties.

Tom Hanks as Mister Rogers will brighten your day
Variety first reported in January that Hanks would play Rogers in TriStar Pictures' biographical drama, with production starting in September.

Google's official Pixel 3 and Pixel 3 XL press renders just leaked
But Google might have come up with a neat new feature that could help shift the focus away from the notch to and onto the screen. Thanks to this early leak , you won't need to wait for the launch of the two devices in a few weeks to enjoy some new wallpapers.

Philippine president revokes amnesty for fiercest critic
Trillanes has insisted that his amnesty was valid and that he followed procedure, and sought help from the Supreme Court. After being booked by police, Trillanes was escorted to a nearby court and posted bail, trailed by many journalists.

Telltale's The Walking Dead will be finished, Stranger Things canned
Netflix have stated that they are still planning on a creating a Stranger Things game even though Telltale Games have collapsed. It's been an incredibly hard year for Telltale as we worked to set the company on a new course.

Fed Raises Interest Rates for Third Time in 2018, Upgrades Economic Outlook
USA companies worry about "disruption of supply chains, materials, cost increases, and loss of markets and things like that". Fed Chairman Jerome Powell is scheduled to speak at press conference at 2:30 p.m.

Eden Hazard leaving Chelsea more likely without extension soon - Cesc Fabregas
Morata's best chance came inside 20 minutes when the Spaniard latched onto Cesc Fabregas's pass over the top. Hazard said: "The cup game was important for Saturday I think".

Year Old Wows Crowd with National Anthem Performance
On Wednesday, the Galaxy announced on social media that Malea Emma had won its #GalaxySocial national anthem contest. Her reaction to winning included yelling and jumping on her bed - exactly what you'd expect from a 7-year-old.

Read: Brett Kavanaugh's opening statement for Senate hearing
Kavanaugh said he doesn't know Swetnick and "this never happened". "When they left the bar under the influence of alcohol". In these notes, it says "four boys were involved, a discrepancy Ford says was an error on the therapist's part".

Julie Swetnick says Brett Kavanaugh doesn't belong on the Supreme Court
On Tuesday, the Judiciary Committee has scheduled a vote on whether to recommend Kavanaugh to the full Senate for Friday. She reportedly grew up in Montgomery County, Maryland and graduated from Gaithersburg High School in 1980 .

© 2015 ExpressNewsline. All Rights reserved.