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Exclusive: Interim SEC chief cast sole vote against suing #Musk
Days before #Republicans took the helm of the #SEC in Jan, the agency's 5 commissioners held a closed-door vote on whether to sue #ElonMusk.
Since 2022, the agency had been investigating whether the #billionaire, a close ally of #Trump, had violated #securities laws by disclosing too late his purchase of shares of #Twitter, now known as #X, prior to acquiring the company that year.
#law #USpol #DualState
https://www.reuters.com/world/us/interim-sec-chief-cast-sole-vote-against-suing-musk-2025-03-24/
4 of the 5 commissioners, including Republican Hester Peirce, voted yes, 3 sources said. The 5th - Republican Mark Uyeda, now acting head of the #SEC - voted no.
The week after the 4-1 vote in favor, the SEC filed a lawsuit against #Musk on Jan 14.
In the days before the vote, Uyeda pressed enforcement staff involved in the Musk case to sign pledges that the case was not driven by politics, acc/to 2 of the sources. The staff refused to sign the pledge, as it is not typical SEC practice.
Two of the sources said Uyeda & his fellow Republican Peirce took issue with what the #SEC wanted #Musk to pay - giving up $150 million in alleged unjust enrichment plus a penalty. Nonetheless, Peirce joined with the three Democrats in voting to sue.
Under US #law, investors who accumulate a stake exceeding 5% of a company's outstanding shares must disclose that holding within 10 days.
#Musk’s disclosure in April 2022 sent #Twitter’s share price soaring 27% over the previous close. Because Musk's disclosure came 21 days after his purchase, the #SEC has said, he was able to buy more shares at lower prices, ultimately allowing him to save $150 million on his acquisition of Twitter.
Twitter shareholders have also sued Musk for #fraud.
investigators at the agency also examined whether they could prove intent behind his late filing, which could have led to more serious charges.
#Musk said he disclosed the stake promptly after realizing he misunderstood the #SEC disclosure rule & the SEC ultimately did not bring any charges alleging intent.
That line of inquiry, & Musk's delays added time to the investigation. He agreed to be deposed 2X in 2022 but refused to be interviewed a 3rd time,leading the SEC to ask a court to compel his additional testimony. On Oct 3, 2024 he appeared, but that year-long tug of war ensured the matter could not be concluded before the election.
#Trump issued an #ExecutiveOrder accusing the #SEC & other agencies of politically motivated investigations under former President Joe #Biden and directing a review of cases over the past four years. The SEC’s spokesperson declined to comment on that review.
@Nonilex
That sounds a hell of a lot like a bill of attainder in the form of an Executive Order. And thus unconstitutional, as is usual for that slimeball.
@Nonilex I for one am pleased to witness the rampant croneyism that the Republicans are showing. Such excellent people.
️ @Nonilex I, and my four teams of lawyers from three different law firms, misunderstood the SEC rule.
@bibliofishy @Nonilex ...but I'm a genius and you should allow me unfettered access to your entire government so I can dismantle it for "efficiency".
@Nonilex it's just awesome that you can buy your way out of prison by buying the presidency. There is nothing more American!