According to PANews, Keith Gill, a retail investor who led the meme stock movement three years ago, is back in the spotlight. His recent display of a billion-dollar GameStop (GME) delivery order on social media, encouraging retail investors to buy, suggests a new wave of meme stock speculation may be brewing. However, his trading activities have caught the attention of the securities regulators in Massachusetts, USA.
A spokesperson from the office of Massachusetts Secretary of State Bill Galvin told the media that the securities department is investigating Gill's actions, and the investigation is still ongoing. On Sunday, Gill posted a trading screenshot on Reddit, showing he held 5 million GME shares worth $115.7 million, as well as 120,000 bullish options expiring on June 21, with a strike price of $20, totaling $65.7 million.
On Monday, GME's stock price closed up 20%. During the trading session, Gill's account screenshot showed he had over $29.2 million in cash. As of Monday's opening, the value of GME positions held by Gill exceeded $386 million. On Monday evening, he shared another screenshot on Reddit, showing he had not sold a single share.
It has been reported that the U.S. Securities and Exchange Commission (SEC) has been reviewing the bullish options related to GME when Gill posted on social media, but it is currently unclear whether the SEC is specifically reviewing Gill. In addition to regulatory agencies, there have been reports that E-Trade, a broker under Morgan Stanley, is considering banning Gill from trading on their platform.
Gill has not responded to these investigations. After the meme stock frenzy in 2021, Massachusetts regulators fined Gill's former company, MassMutual, $4 million, accusing it of failing to properly supervise Gill. Until the end of January 2021, Gill served as the company's Director of Financial Wellness Education.
Under the influence of multiple negative factors, GME's US stock fell more than 5% overnight and rose about 2% during the after-hours trading session.