Margaret Ryan, Director, Division of Enforcement
Sept. 19, 2025: Today, after a nine-day trial and fewer than four hours of deliberation, a jury in the United States District Court for the Southern District of New York found defendant Steven M. Gallagher liable for securities fraud and manipulative trading. As demonstrated at trial, between December 2019 and October 2021, Gallagher used his Twitter account to encourage his numerous followers, including many retail investors, to buy stocks in which Gallagher had already amassed holdings. Gallagher then sold those stocks while he continued to recommend others buy them, never disclosing that he was selling the stocks. Gallagher repeated this pattern with over 30 microcap stocks, making illicit trading profits of over $2.6 million. For two of these stocks, Gallagher was also found to have engaged in manipulative trading by “marking the close” – a strategy involving placing end-of-day orders to buy stock at above-market prices to artificially increase the stock’s price.
Statement of SEC Division of Enforcement Director Margaret A. Ryan:
“We are pleased with the jury verdict holding Steven Gallagher liable for fraud and for manipulative trading of microcap stocks, including by using social media. As the hard work of the SEC trial team demonstrates, the SEC is committed to continuing to protect retail investors and holding accountable the perpetrators of manipulative trading schemes.”