Prosecutors press charges
Scottish trader accused of market fraud over tweets
A Scottish markets trader has been charged by US prosecutors in connection with posting fraudulent tweets to enable him to profit from share price movements.
James Craig, 62, from Dunragit near Stranraer, is accused of tweeting false news about two firms that would make their share price fall, so he could buy and resell the stock for a profit.
Prosecutors in San Francisco claim shareholders lost more than £1m as a result of his alleged tweets. The US Securities and Exchange Commission (SEC) has filed fraud charges against Mr Craig in a federal court.
The tweets concern Audience and Sarepta Therapeutics. In the case of Audience, several tweets were said to cause the share price of the mobile audio company to fall 28% before the Nasdaq exchange in New York temporarily suspended trading.
An investigation is also under way into a 16% fall in drug firm Sarepta Therapeutics.
Prosecutors claimed shareholders had lost more than £1.05m.
Jina Choi, director of the SEC’s San Francisco regional office, said the fraudulent tweets “disrupted the markets for two public companies and caused significant financial losses for their investors.”