The SEC’s complaint, filed in federal court in New York, alleges that since at least November 2020, David Lee Stone has used deceptive means to obtain pre-release access to stock picks by at least two subscription stock picking services offered by The Motley Fool. According to the complaint, beginning in January 2021, Stone began sharing those picks with his friend John Robson, typically a day or two prior to their release. The SEC alleges that Stone and Robson then purchased aggressive positions in the securities of the selected issuers, the prices of the issuers’ stocks would typically rise after The Motley Fool announced its picks, and Stone and Robson would then cash out of their positions, often within minutes after The Motley Fool announcement. The SEC contends that Stone has made illicit profits of more than $3.9 million, and Robson has made illicit profits of nearly $3 million. The SEC’s complaint names as relief defendants two of Stone’s family members and two of Robson’s friends whose brokerage accounts placed similar trades and generated approximately $5 million by trading ahead of The Motley Fool stock picks.
‘Enforcement 40’ for 2020
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