A new lawsuit in federal court in Florida alleges that a top Robinhood executive sold his stock shortly before he limited buying in shares of some meme stocks:
Robinhood Securities President and COO, James (Jim) Swartwout, who Tenev points to as making the ultimate call to PCO, says in an internal chat on January 26, 2021, “I sold my AMC today. FYI – tomorrow morning we are moving GME to 100% – so you are aware.”
When Robinhood froze buying in shares of stocks like AMC Entertainment Holdings, Inc. and GameStop Corp. in January, it caused large losses for many customers. With demand for the stocks artificially reduced, prices plummeted.
Angry as customers were then, I wonder how much angrier they’ll be to know that the top executives of Robinhood may have conspired together to save themselves before throwing their customers to the wolves.
If these allegations are proven, top Robinhood executives could be headed to prison. Such actions are illegal and totally unethical.
One thing I wonder is if Robinhood executives were dumb enough to put this in an online chat, how did they get their jobs in the first place?
There will be no blog next week. I’ll be on a trip to celebrate my grandmother’s 87th birthday!
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