Insurance company MassMutual will pay a $ 4 million fine as part of a settlement with Massachusetts regulators.Roaring KittyIt was centered around a relentless cheerleader on GameStop’s stock. Memestock mania earlier this year..
State officials overseeing the market said the MassMutual unit, which hired Gil, who resigned in January, was unable to adequately oversee the transactions and online activities of him and other agents. In addition, Gil said the settlement was trading on behalf of three other people who were not affiliated with MassMutual without the approval of the insurance company. The insurer did not approve or deny the accusation, but agreed to the fine and independent compliance review and other measures.
“MassMutual is pleased to put this issue behind us, avoiding the costs and distractions associated with protracted proceedings,” said a spokeswoman.
Gil’s lawyer did not immediately respond to the request for comment.
Gil has increased his online followers with over 250 hours of YouTube videos. Many of them elaborate on his view of GameStop, a video game retailer that was once the mainstay of the mall but has had problems with inventory declining in recent years.GameStop has become a popular favorite of loosely organized day traders, partly because Gil’s focus is on stocks. Reddit WallStreetBets Trading Bulletin Board Gil also played an active role, boosting the company’s stock price by 600% in the last few days of January. GameStop shares are currently trading for over $ 200 and have continued to rise by over 1,000 percent since the beginning of the year.
GameStop and other stocks that were a favorite of online crowds, such as the struggling movie chain AMC, have turned into “meme stocks.” Stock prices fluctuated sharply as online traders adjusted their buying power to drive stock direction. This new generation of traders often ignores traditional sources of stock market advice and instead looks online for tips on playing the market on TikTok or YouTube. The explosive growth of meme stocks in late January marked the peak of growing interest in stock trading that began during the pandemic.
Business and economy
Gil proved to be one of the more compelling online stock market sorcerers. His video-he took a picture of himself sitting in a video game chair wearing a trademark red headband-was informal and irreverent.But even if his online profile grows, he Registered securities broker, And until he resigned in January, he worked as Director of Financial Wellness Education at MassMutual, officially known as the Massachusetts Mutual Life Insurance Company.
“As far as MassMutual is concerned, they were clearly entirely responsible for not overseeing him,” federal secretary William F. Galvin said in an interview. “That is, it was beyond the problem of minor negligence. It was complete and thorough.”
Under his online alias, Gil provided regular updates on how his GameStop investment was progressing and posted his deal on Reddit under the repeated rubrics of the “GMEYOLO Update”. bottom. To one point Between the peaks of GameStop frenzy, Gill posted an image on Reddit, showing that his first $ 53,000 bet on GameStop has risen to $ 48 million.
The settlement also included other details of Mr. Gil’s trading activities, which regulators said were in breach of Massachusetts rules. For example, Gil executed about 1,700 transactions in the accounts of the other three. The identities of the people were not revealed what was being traded. However, under Massachusetts regulations, such transactions by brokers outside the brokerage firm where the broker works must be approved in writing in advance, the settlement said.
Gil notified the company of access to one of these individuals’ accounts and requested permission to manage them, but the company refused, Galvin’s office said. Mr Gil also managed two other external investment accounts, but MassMutual was unable to identify that fact, the settlement said.
An investigation into Gil by Galvin’s office is still pending.
Former employer of “Roaring Kitty”, GameStop Trader, fine
Source link Former employer of “Roaring Kitty”, GameStop Trader, fine