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What I’m curious about is whether the SEC is going to sue DeepFuckingValue and require him to disgorge all of his gains. He’s not just a Joe Schmoe on Reddit,

What I’m curious about is whether the SEC is going to sue DeepFuckingValue and require him to disgorge all of his gains. He’s not just a Joe Schmoe on Reddit, he’s a licensed broker with like four active Securities licenses which prohibit publicly pumping a stock exactly like he did. He’s had to sign numerous agreements and passed numerous exams detailing these responsibilities, I don’t understand how he didn’t try to cover his tracks better. Source: https://wallstreetonparade.com/2021/01/gamestop-promoter-keith-gill-was-no-amateur-trader-he-held-sophisticated-trading-licenses-and-worked-in-the-finance-industry/ https://wallstreetonparade.com/2021/01/gamestop-promoter-kei...

42_ 6y ago
How did he pump the stock? He only posted his gains and losses over a period of several months.
- valuearb 6y ago
  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 6y ago
    Plausible deniability? Emphasis on could, which is not an exaggerated statement, nor misleading; it happened.
    - valuearb 6y ago
      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 6y ago
        I see. Thanks for elaborating. I guess he made enough to afford a good lawyer.
- dfraser992 6y ago
  How did Trump persuade a mob to attack Congress and interrupt the official certification process? He only said stuff like 'fight like hell' and 'the election was stolen', but no direct orders... Manipulate people's emotions here and there, a bit at a time, and let things snowball as they will.. But what Trump did for the past 4 years ever since he said 2016 was rigged, it is basically a pump and dump. In 2016, there were social media posts about how the 2020 election was going to have to be suspended because of all the illegal immigrants who voted in 2016. yes, seriously. It is a distributed form of propaganda that leverages the power of social media and an understanding of how mobs form. None of this is really new, but things are such now that manias like the Tulipmania can be easily kicked off without any centralized planning by a small group of conspirators or as organized like what the Nazis did. I haven't read anything of DFV's old posts - I thought the general thesis was a valid one, maybe GME will turn itself around... but if he did periodically promote how well he was doing to a group of people primed for this like WSB is, then yeah he is guilty of something. Or maybe everything got out of hand, but he is still posting about his 23 million dollar gain...
PartiallyTyped 6y ago
Unless DFV is shown to be the same user that figured out a short squeeze was possible and posted it, there is no basis. DFV's price target wasn't $300 or the $450 it reached, it was much lower, but his analysis makes sense and is equally valid to Cramer's. In-fact, I'd go as far as to say that DFV's analysis is better because he is more transparent than Cramer - somebody who publicly admitted to screwing over stocks and gave analysis on how to destroy a company through a hedge fund - and took into consideration the new board and the change in direction, if anything, every due diligence written by 'boomers' that I read does not match reality.
- valuearb 6y ago
  Cramer doesn’t work for a licensed broker or investment manager, doesn’t have any active licenses, and has never had the level of licensing, including supervisory that Mr. Gill had as an active employee.
thinkingemote 6y ago
Most of what he did was to say he liked the stock from what I gather. You'd need to find the evidence that he himself encouraged a pump and dump which I have not seen anywhere. The term "not financial advice" is also probably to be found in the most upvoted posts by other users which could be seen as encouraging risky behaviour
- valuearb 6y ago
  “ Gill was a clean cut Registered Rep at MassMutual by day and a long-haired, head-banded, fast-talking stock promoter on social media by night, sending out video promotions for GameStop that were filmed at a trading desk he had set up in his basement. (See this YouTube video by Gill. It has a caption suggesting GameStop could go from $5 to $50.) This is highly likely to be a serious problem for both Gill and MassMutual. A genuine amateur trader could plead ignorance of industry rules about hyping stocks to the public. A heavily licensed industry professional cannot. The fact that Gill passed all those exams means that he knows what the rules are. In addition, the broker-dealer unit of MassMutual, MML Investor Services LLC, that employed Gill as a Registered Rep, could potentially face charges of failure to supervise.”
  - thinkingemote 6y ago
    Interesting perspective, thanks!
    - valuearb 6y ago
      But please note that’s from WallStreetParade, I don’t know enough about securities law to say they are correct and they likely have their biases.
- dfraser992 6y ago
  "not a financial advisor" is, practically speaking, much like SWIM (Someone Whom I Met) back in the early days of the Net when talking about drugs was 'likely' to get the police involved if you used your real name etc etc. The majority of the posts I had read on Reddit are way too emotionally persuasive and propagandistic that 'not a financial advisor' is really just meaningless. If I was a judge and had a case involved that sort of language while the information was obviously not balanced or neutral, I'd consider it line noise.

42_ 6y ago

How did he pump the stock? He only posted his gains and losses over a period of several months.

valuearb 6y ago
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 6y ago
  Plausible deniability? Emphasis on could, which is not an exaggerated statement, nor misleading; it happened.
  - valuearb 6y ago
    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 6y ago
      I see. Thanks for elaborating. I guess he made enough to afford a good lawyer.
dfraser992 6y ago
How did Trump persuade a mob to attack Congress and interrupt the official certification process? He only said stuff like 'fight like hell' and 'the election was stolen', but no direct orders... Manipulate people's emotions here and there, a bit at a time, and let things snowball as they will.. But what Trump did for the past 4 years ever since he said 2016 was rigged, it is basically a pump and dump. In 2016, there were social media posts about how the 2020 election was going to have to be suspended because of all the illegal immigrants who voted in 2016. yes, seriously. It is a distributed form of propaganda that leverages the power of social media and an understanding of how mobs form. None of this is really new, but things are such now that manias like the Tulipmania can be easily kicked off without any centralized planning by a small group of conspirators or as organized like what the Nazis did. I haven't read anything of DFV's old posts - I thought the general thesis was a valid one, maybe GME will turn itself around... but if he did periodically promote how well he was doing to a group of people primed for this like WSB is, then yeah he is guilty of something. Or maybe everything got out of hand, but he is still posting about his 23 million dollar gain...

PartiallyTyped 6y ago

Unless DFV is shown to be the same user that figured out a short squeeze was possible and posted it, there is no basis. DFV's price target wasn't $300 or the $450 it reached, it was much lower, but his analysis makes sense and is equally valid to Cramer's. In-fact, I'd go as far as to say that DFV's analysis is better because he is more transparent than Cramer - somebody who publicly admitted to screwing over stocks and gave analysis on how to destroy a company through a hedge fund - and took into consideration the new board and the change in direction, if anything, every due diligence written by 'boomers' that I read does not match reality.

valuearb 6y ago
Cramer doesn’t work for a licensed broker or investment manager, doesn’t have any active licenses, and has never had the level of licensing, including supervisory that Mr. Gill had as an active employee.

thinkingemote 6y ago

Most of what he did was to say he liked the stock from what I gather. You'd need to find the evidence that he himself encouraged a pump and dump which I have not seen anywhere. The term "not financial advice" is also probably to be found in the most upvoted posts by other users which could be seen as encouraging risky behaviour

valuearb 6y ago
“ Gill was a clean cut Registered Rep at MassMutual by day and a long-haired, head-banded, fast-talking stock promoter on social media by night, sending out video promotions for GameStop that were filmed at a trading desk he had set up in his basement. (See this YouTube video by Gill. It has a caption suggesting GameStop could go from $5 to $50.) This is highly likely to be a serious problem for both Gill and MassMutual. A genuine amateur trader could plead ignorance of industry rules about hyping stocks to the public. A heavily licensed industry professional cannot. The fact that Gill passed all those exams means that he knows what the rules are. In addition, the broker-dealer unit of MassMutual, MML Investor Services LLC, that employed Gill as a Registered Rep, could potentially face charges of failure to supervise.”
- thinkingemote 6y ago
  Interesting perspective, thanks!
  - valuearb 6y ago
    But please note that’s from WallStreetParade, I don’t know enough about securities law to say they are correct and they likely have their biases.
dfraser992 6y ago
"not a financial advisor" is, practically speaking, much like SWIM (Someone Whom I Met) back in the early days of the Net when talking about drugs was 'likely' to get the police involved if you used your real name etc etc. The majority of the posts I had read on Reddit are way too emotionally persuasive and propagandistic that 'not a financial advisor' is really just meaningless. If I was a judge and had a case involved that sort of language while the information was obviously not balanced or neutral, I'd consider it line noise.