Business

Fined By Finance Regulator SEC, Elon Musk Hits Back, Calls It Shortseller Enrichment Commission

DIVYIA ASTHANA | 0
3293
| October 5 , 2018 , 12:04 IST

Tesla co-founder Elon Musk who was forced to step down as Chairman after a case filed by the US Securities and Exchange Commission (SEC) over a tweet, on Friday took to Twitter once again to mock SEC as 'Shortseller Enrichment Commission'.

"Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!" Musk tweeted.

The latest tweet from Musk came the same day that US District Court judge Alison Nathan from New York requested a joint letter regarding why she should approve of the tentative settlement between Musk the Securities and Exchange Commission.

The US Securities and Exchange Commission (SEC) said on September 27 that it has charged Tesla CEO Elon Musk with securities fraud, alleging that Musk misled investors last month in a series of tweets about taking the electric car company Tesla private. Among other things, the SEC is seeking to bar Musk from serving as an officer or director of a publicly traded company if he is found guilty in the case.

ALSO READ: Tesla Co-Founder Elon Musk To Step Down As Chairman Over Fraud Charges

Stephanie Avakian, co-director of the SEC's division of enforcement, during a press conference emphasised that the CEO of a public company has to be careful about making comments publically. 

"A chairman and CEO of a public company has important responsibilities to shareholders," she said.

"Those responsibilities include the need to be scrupulous and careful about the truth and accuracy of statements made to the investing public, whether those statements are made in traditional forms such as a press release or an earnings call or through less formal methods such as Twitter or other social media," Avakian said.

Barely days later it was announced that Musk would be stepping down as Chairman of Tesla for misleading the company’s investors. In the fraud settlement Musk and Tesla were also fined with  $20 million each. Musk will leave chairman position in next 45 days but will remain on the post of CEO.