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'Shortseller Enrichment Commission’? Musk mocks SEC over fraud probe

05 October 2018

While Musk wanted to fight the SEC, he reportedly had a change of heart when Tesla's stock plummeted almost 14 percent after the lawsuit was announced. "And the name change is so on point!" he tweeted, a jeering reference to the Securities and Exchange Commission, whom he'd settled with five days earlier.

On Thursday, Tesla shares fell 2.4% to $275 in after-hours trading.

It seems that the committee will start overseeing things in a few months, so we have about 80 days remaining of potential Twitter adventures with Musk.

Musk agreed to settle the agency's case against him on September 29. Representatives for the Palo Alto, California-based company didn't respond to requests for comment.

Last weekend Mr Musk agreed to step down as Tesla Chairman and pay a $20m (£15m) fine over tweets that he had funding to take Tesla private.

As a result, the SEC reportedly increased Musk's fine from $10 (£7.7 / €8.7) million to $20 (£15.4 / €17.4) million.

Judge Alison Nathan said it was a regular practice at the Southern District of New York Court to ask for a joint statement. The agency also tacked a year on the ban preventing him from serving as Tesla chairman.

The tweet came less than four hours after U.S. District Judge Alison Nathan in Manhattan ordered Musk and the SEC to explain by October 11 in a joint letter why their settlement was fair and reasonable and would not hurt the public interest. Ryan White, an SEC spokesman, declined to comment.

"At the very the least, they can read the riot act to Musk's lawyer", said Stephen Crimmins, a former SEC enforcement lawyer who's now a partner at Murphy & McGovern. The proposed take-private price was $420 a share.

Musk said in a company statement last week that he was "deeply saddened and disappointed" by the lawsuit, which he described as "unjustified". "The vast majority of settlements like this are approved by courts". 'This is just a hoop to be jumped through'.

'Shortseller Enrichment Commission’? Musk mocks SEC over fraud probe