Member of Knesset Zvi Sukkot Calls for Investigation Into Social Media Stock Scam
Tel Aviv – Member of Knesset (MK) Zvi Sukkot has called on the CEO of the Securities Authority to investigate Moshe Redman and Shakma Bressler for allegedly engaging in a stock scam. The two individuals had allegedly called on social media platforms for people to buy shares of Big Company, which Sukkot claims is a deceptive practice aimed at manipulating people into purchasing securities.
In a letter addressed to the CEO, Sukkot cited a ruling from the district court, stating that individuals engaging in such actions were motivated by a desire for financial gain, making it a potential crime. Sukkot argues that Redman and Bressler’s actions have not only damaged the integrity and fairness of trading in securities at the Tel Aviv Stock Exchange but have also compromised the ability of the investing public to accurately assess the risks and prospects associated with any investment.
“The wide circulation of their publications has led to a decline in public trust in the stock market, which is a cornerstone of this industry,” Sukkot stated in the letter, urging the CEO to launch an investigation into the matter.
Furthermore, Sukkot raised concerns about the legality of the strike, emphasizing that Big Company is a public company that is traded on the stock exchange. According to Sukkot, the company has an obligation to act in the best interest of its shareholders, and it is unclear whether the company’s owners are legally allowed to conduct a strike on political grounds if it adversely affects the shareholders.
The Securities Authority, responsible for overseeing and regulating the securities market in Israel, will now review Sukkot’s letter and assess whether there is sufficient evidence to warrant an investigation. If the investigation proceeds and Redman and Bressler are found guilty, they could face substantial legal consequences.
The public’s trust in the stock market plays a crucial role in attracting investors and ensuring fair and transparent transactions. Therefore, actions to manipulate stock prices or deceive investors not only harm the individuals directly involved but also undermine the overall credibility of the financial system. The outcome of this potential investigation will shed light on the seriousness of the allegations against Redman and Bressler and help safeguard the integrity of the stock market.