Steven Gallagher Allegedly Operated a Social Media Pump-and-Dump Scheme on Twitter to Defraud Retail Investors, Earning Over $1 Million in Illegal Proceeds
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky J. Patel, Acting Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that STEVEN GALLAGHER was charged in a Complaint in Manhattan federal court with securities fraud, wire fraud, and market manipulation. GALLAGHER, using the alias “Alex DeLarge,” created a stock promotion account on Twitter that gained over 70,000 followers. GALLAGHER used that account to tout certain over-the-counter penny stocks and to disseminate false and misleading information about his trading in those stocks in order to induce his followers to purchase those stocks and drive up their prices. GALLAGHER earned over $1 million in profits by then secretly selling his previously acquired holdings of those penny stocks. GALLAGHER was arrested today in the Northern District of Ohio and is expected to be presented before a magistrate judge this afternoon.