HOUSTON – The Justice Department has accused eight men of running a $114 million, social media-based “pump and dump” scheme.
According to a release, an indictment accuses them of using their social media presence on Twitter and Discord to promote interest in certain securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices.
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Between January 2020 and April 2022, the defendants allegedly profited approximately $114 million from the stock trading scheme.
Those indicted include Edward Constantinescu aka Constantin 38, of Montgomery; Perry “PJ” Matlock, 38, of The Woodlands; John Rybarczyk, 32, of Spring; Dan Knight, 23, of Houston; along with Gary Deel, 28, and Tom Cooperman, 34, both of Beverly Hills, Calif.; Stefan Hrvatin, 35, of Miami, Fla.; and Mitchell Hennessey, 23, of Hoboken, N.J.
Each man is charged with one count of conspiracy to commit securities fraud, the release stated. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman and Hennessey are each charged with two counts of securities fraud.
According to the indictment, the defendants collectively had over 1.5 million Twitter followers to whom they allegedly disseminated false and misleading information about certain securities. They also allegedly spread false and misleading information on Atlas Trading, an online community they ran for individual stock traders.
The defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme, according to the release:
| Defendant | Twitter handle | Discord handle |
|---|---|---|
| Edward Constantinescu | @MrZackMorris | Zack Morris#0001 |
| Perry “PJ” Matlock | @PJ_Matlock | PJ Matlock#0001 |
| John Rybarczyk | @Ultra_Calls | Ultra#0374 |
| Gary Deel | @notoriousalerts | Mystic Mac🍀#7345 |
| Stefan Hrvatin | @LadeBackk | Lade Backk#6083 |
| Tom Cooperman | @ohheytommy | TOMMY COOPS #5323 |
| Mitchell Hennessey | @Hugh_Henne | HOODHUGHBEAR🐂#4034 |
| Daniel Knight | @DipDeity | Dan, Deity of Dips#8114 |
“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said in a release. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”
The FBI Houston Field Office is investigating the case.
Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas “Heyward” Carter III for the Southern District of Texas are prosecuting the case.
If you believe you are a victim in this case, contact the Justice Department’s Fraud Section Victim Witness Unit at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.