Words sentences that are offensive

[webfact]

Tesla's Musk, ordered to defend fraud settlement, takes aim at SEC

By Jonathan Stempel and Sonam Rai

 

FILE PHOTO: Tesla Motors CEO Elon Musk reveals the Tesla Energy Powerwall Home Battery during an event in Hawthorne, California, U.S., April 30, 2015. REUTERS/Patrick T. Fallon/File Photo

 

(Reuters) - Tesla Inc <TSLA.O> Chief Executive Elon Musk on Thursday mocked the U.S. Securities and Exchange Commission, hours after a federal judge ordered him and the regulator to justify their settlement of securities fraud charges.

 

"Just want to [sic] that the Shortseller Enrichment Commission is doing incredible work," Musk, a frequent critic of investors betting against the electric car company, wrote on Twitter. "And the name change is so on point!"

 

The settlement last Saturday was intended to resolve charges that Musk misled investors in tweets on Aug. 7, including that there was "funding secured" to take his Palo Alto, California-based company private at $420 per share.

 

Musk agreed to pay a $20 million fine, and step aside as Tesla's chairman for three years.

 

Tesla also accepted a $20 million fine, despite not being charged with fraud.

 

Musk's latest tweet came less than four hours after U.S. District Judge Alison Nathan in Manhattan ordered him and the SEC to explain by Oct. 11 in a joint letter why their settlement was fair and reasonable and would not hurt the public interest.

 

The judge said it was her regular practice to request such letters.

 

Nathan "may want to know why Tesla is paying a fine because the CEO doesn't know when to shut up," said Adam Pritchard, a University of Michigan law professor and former SEC lawyer.

 

Tesla declined to comment. The SEC did not respond to requests for comment on Nathan's order and Musk's tweet.

 

Shares of Tesla closed down 4.4 percent at $281.83, and fell another 2.2 percent after market hours following Musk's tweet.

 

Some judges have complained about being viewed as rubber stamps for SEC settlements.

 

Among them was Nathan's colleague Jed Rakoff, who had objected to the SEC's decades-old policy of letting some corporate defendants settle without admitting or denying wrongdoing, as Musk did.

 

But in 2014, the 2nd U.S. Circuit Court of Appeals overturned Rakoff's rejection of a $285 million SEC settlement with Citigroup Inc <C.N>, saying he should have given "significant deference" to the regulator.

 

The 2nd Circuit has jurisdiction over Nathan's court, and lawyers said prior to Musk's latest tweet that his settlement would likely win approval, though orders such as Nathan's are not too common.

 

"In and of itself it's not an ominous sign," said Jordan Thomas, a partner at Labaton Sucharow and former SEC lawyer. "The vast majority of settlements like this are approved by courts."

 

Pritchard said he saw no "serious chance" for Musk's settlement to be rejected based on 2nd Circuit precedent. "This is just a hoop to be jumped through," he said.

 

The settlement was announced on Sept. 29, two days after Musk was charged.

 

The case is SEC v Musk, U.S. District Court, Southern District of New York, No. 18-08865.

 

(Reporting by Joanthan Stempel in New York and Sonam Rai in Bengaluru; Editing by Anil D'Silva and Lisa Shumaker)

 

-- © Copyright Reuters 2018-10-05

[bluesofa]

14 minutes ago, webfact said:

Chief Executive Elon Musk on Thursday mocked the U.S. Securities and Exchange Commission, hours after a federal judge ordered him and the regulator to justify their settlement of securities fraud charges.

Strange, I didn't notice anyone being called a 'pedo' in Musk's tweet.

 

[impulse]

I got a kick out of reading a news clip a few weeks back about a group of shorts getting together to file a lawsuit claiming Musk's actions were specifically orchestrated to harm the people who shorted TESLA stock. 

 

As if raising the stock price serves the sole (and despicable) purpose of keeping shorts out of the money...

 

[Pedrogaz]

1 hour ago, impulse said:

I got a kick out of reading a news clip a few weeks back about a group of shorts getting together to file a lawsuit claiming Musk's actions were specifically orchestrated to harm the people who shorted TESLA stock. 

 

As if raising the stock price serves the sole (and despicable) purpose of keeping shorts out of the money...

 

Shorts are not despicable, they play an important role in keeping companies honest. If they did not exist you would be complaining about companies pumping their stock all the time.

[impulse]

51 minutes ago, Pedrogaz said:

Shorts are not despicable, they play an important role in keeping companies honest. If they did not exist you would be complaining about companies pumping their stock all the time.

 

Nowhere did I say shorts are despicable.

 

But I do believe the combination of shorts, the 3 minute news cycle and (untraceable) fake news presents an opportunity for abuse, resulting in the transfer of wealth from honest people to cheaters.  Short a stock, get a few influencers to post negative information about the company and BINGO, you've robbed the people who invested in the company.
 

As opposed to the building of wealth, shorts are zero sum.  Kind of like Las Vegas.  If you happen to like the concept of financial markets being big gambling casinos (backed up by public funds when they go tits up), shorts are great.  If you believe that the purpose of financial markets is to provide funding for businesses to invest and grow, they're like a carbuncle.

 

 

[Basil B]

5 hours ago, webfact said:

 

Tesla also accepted a $20 million fine, despite not being charged with fraud.

As I pointed out before on another thread, this was the work of Musk and lack of control by the Snr executives of the company, why should the share holders suffer again as many are the victims of this fraud, it should be Musk,the Directors and Executives of Tesla digging in their pockets to cover this $20 Mil fine.

[55Jay]

1 hour ago, Pedrogaz said:

Shorts are not despicable, they play an important role in keeping companies honest. If they did not exist you would be complaining about companies pumping their stock all the time.

I've got no problem with someone who shorts, and that's it.  They make their play, I make mine, no worries. 

 

Can't accept the kind of malicious Short referred to here though.  One who makes their bet then tries to drive the s/p down by spreading false propaganda, or that which has a grain of truth but intentionally spun way out of proportion, with the intent to manipulate public sentiment, influence investor behavior......... just so they (the Short(s)) can profit and "win".

 

I get the feeling there's a small cadre within the larger Short genre, who communicate and coordinate their efforts on-line, and for some, it seems personal as well as profit driven.

[stevemac]

As I pointed out before on another thread, this was the work of Musk and lack of control by the Snr executives of the company, why should the share holders suffer again as many are the victims of this fraud, it should be Musk,the Directors and Executives of Tesla digging in their pockets to cover this $20 Mil fine.

Unfortunately you as a part owner (shareholder) have to take it on the chin. The motormouth needs keeping in line or kicking out.

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app

[Basil B]

59 minutes ago, stevemac said:

Unfortunately you as a part owner (shareholder) have to take it on the chin. The motormouth needs keeping in line or kicking out.

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app
 

As a shareholder one expects the board of directors to be honest and tell the truth, $20 mil is peanuts to this guy, should have been locked up, band from boardrooms for life.

[roquefort]

Quote

Among them was Nathan's colleague Jed Rakoff, who had objected to the SEC's decades-old policy of letting some corporate defendants settle without admitting or denying wrongdoing, as Musk did.

Unfortunate name for a judge apparently opposed to market corruption (unlike Bernie Made-off!)

 

 

[pegman]

What a joke this all is. Musk could not have been more amateurish in his privatization ploy. Tesla's shares hit $160 less than his phony $420 privatization price today. Shorts are laughing all the way to the bank. Brass tacks is that this still well over priced car manufacturer cannot compete with the big boys. As such it should never have a market cap the same as a GM. My prediction is bankruptcy within 3 years.  

[stevemac]

As a shareholder one expects the board of directors to be honest and tell the truth, $20 mil is peanuts to this guy, should have been locked up, band from boardrooms for life.

Where were the board of directors not honest and telling the truth? Must have missed something.

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app

[Basil B]

27 minutes ago, stevemac said:

Where were the board of directors not honest and telling the truth? Must have missed something.

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app
 

I think you did miss something, Was not Musk a director???

[stevemac]

I think you did miss something, Was not Musk a director???

Hmmmm. But the poster said the bod should have got rid of Musk so I naturally assume he is excluded from the statement

Sent from my SM-G920F using Thailand Forum - Thaivisa mobile app