Court Enters Final Judgment Against James Alan Craig
Litigation Release No. 24481 / May 28, 2019
Securities and Exchange Commission v. James Alan Craig,, Civil Action No. 3:15-cv-05076) (N.D. Cal.)
On May 20, 2019, the U.S. District Court for the Northern District of California entered a final judgment against Defendant James Alan Craig, of Dunragit, Scotland.
The SEC's complaint previously charged Craig with securities fraud for tweeting false statements about two companies which caused sharp drops in their stock prices and triggered a trading halt in one of them. The SEC alleged that Craig disseminated these false statements using Twitter accounts that he deceptively created to look like real Twitter accounts of well-known securities research firms. After making the fraudulent tweets, Craig allegedly placed trades in an attempt to capitalize on the stock price movements. Notwithstanding Craig's attempt to capitalize on the downward stock price movement he caused, he allegedly waited too long to place each trade, resulting in only $97 in illicit trading profits.
Without admitting or denying the allegations, Craig consented to the judgment that permanently enjoined him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordered him to pay disgorgement and prejudgment interest totaling $217. The final judgment concludes the litigation.