[valuearb]

The captions on his YouTube videos stated GME could increase by 10x, while he was an active broker/supervisor at a licensed brokerage and money manager.

And

“ FINRA has strict rules for licensed brokers regarding use of social media. For example, their rulebook states:

“Investors and financial services professionals alike are increasingly using social media for a variety of business purposes. Social Media may be a new medium, but FINRA’s rules on communicating with the public are still applicable. The rules protect investors from false, misleading claims, exaggerated statements, and material omissions…”

[PartiallyTyped]

Plausible deniability? Emphasis on could, which is not an exaggerated statement, nor misleading; it happened.

[valuearb]

Doesn’t matter what happened, it’s exactly the definition of market manipulation the SEC looks for. Again, he’s not you or me, he’s a licensed broker with specific restrictions and responsibilities.

“ “Firms must have the ability to supervise the business-related content associated persons are communicating on these sites, including possible suitability determinations if recommendations are made. A registered principal must review prior to use any social media site that an associated person intends to use for business. The principal may only approve a social media site if the principal has determined the associated person can and will comply with applicable rules…”

We find it highly unlikely that MassMutual would have approved Gill to post on Reddit’s WallStreetBets, whose users appeared to pride themselves on how frequently they could pack the words f** and b**s into a sentence, frequently with representative artwork.

The largest brokerage firms on Wall Street would never allow a Registered Rep to use multiple anonymous user names and promote a $5 stock to a mass public audience because there would be no way to know if it was a suitable investment for the level of risk the individual person could afford to take. The bulk of lawsuits that are brought, and won, against brokerage firms are for “failure to supervise.”

Gill’s YouTube videos did offer a scrolling statement at the end to the effect that this was not meant to be personal investment advice. But if it wasn’t, why was he putting it out on a mass medium like YouTube.

Gill has another potential problem. According to media reports, Gill was posting copies of his brokerage statements at E-Trade showing his GameStop position making millions of dollars in a short span of time while he was employed at MassMutual. Under FINRA Rule 3210, a licensed broker must first get permission from the broker-dealer where they are employed to open a trading account at another firm. (This is common knowledge among 99 percent of brokers on Wall Street.) If the employing firm grants that permission, the other brokerage firm must send duplicate copies of the broker’s statement to the compliance officer of his current employer. This is to prevent the firm’s name from getting dragged through the mud (as is happening currently to MassMutual) because their broker may have engaged in some form of stock manipulation. It is also to fulfill the broker-dealer’s obligation to supervise their brokers and protect the public.”

[PartiallyTyped]

I see. Thanks for elaborating. I guess he made enough to afford a good lawyer.

[valuearb]

He made enough to afford a GREAT lawyer, and the SEC has a reputation for settling easily. And doesn’t hurt that he’s a grass roots hero.

[PartiallyTyped]

TBH, I wouldn't be surprised if he had another account with some more shares that he sold near the peak for > 2000% earnings.