Rapper 50 Cent may be in big trouble with the all-powerful Security Exchange Commission for encouraging his Twitter followers to invest in a money-losing penny stock that netted him nearly $9 million.
Curtis Jackson reportedly tweeted to his 3.8 million followers, “You can double your money right now. Just get what you can afford” and “They are no joke get in now” about H&H Imports, previously a money-loser with a reported deficit of at least $3.3 million. Jackson reportedly received 30 million shares of H&H stock in a private placement last October. H&H owns TV Goods, a direct response marketing founded by infomercial sage Kevin Harrington.
H&H closed at 39 cents on Monday, up 29 cents, netting Jackson’s shares $8.7 million.
That manner of business is not permitted by the SEC, industry pundits state.
“There are very strict guidelines as to what a person can do in terms of possibly manipulating the value of a stock,” financial expert and 60-Minute Money Workout author Ellie Kay tells “FOX411.” “I don’t think it would be a huge surprise to anyone if 50 Cent were investigated for what he did.”
Later, Jackson apparently back-peddled when he reportedly deleted his original posts and Tweeted, “I own HNHI stock thoughts on it are my opinion. Talk to financial advisor about it.” Later, 50 added: “HNHI is the right investment for me it may or may not be right for u! Do ur homework.”
Kay theorizes that one of 50 Cent’s many lawyers advised him to go back and revise his message to his Twitter followers so as to not appear to operate outside the SEC guidelines. Stay tuned for further developments in this story. –terry shropshire
