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Twitter Penny Stock Fraud Schemer Sentence Is Six Months at Home

June 27, 2022, 4:45 PM

An Ohio man who used a fake persona inspired by a character from “A Clockwork Orange” to conduct a pump-and-dump scheme was ordered to spend six months in home confinement.

Steven Gallagher, who pleaded guilty in February to securities fraud, was sentenced by US District Judge Valerie Caproni in New York on Monday. Gallager used the Twitter alias “Alex DeLarge” to encourage his followers to invest in penny stocks in order to drive the prices higher.

Gallagher “was sophisticated enough to know he could move markets in thinly-traded stocks and make money doing it,” Caproni said. “This conduct was deplorable.” ...