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Robinhood Financial fined $65 million by SEC for misleading users
CBS News (From the Communist Broadcasting System) ^ | December 17, 2020 | Khristopher J. Brooks

Posted on 01/30/2021 9:19:10 AM PST by Navy Patriot

Robinhood Financial has been fined $65 million for misleading its stock market customers about how the company makes its revenue from their trades, the Securities and Exchange Commission said Thursday. The SEC fine comes one day after regulators in Massachusetts filed a lawsuit against Robinhood for allegedly targeting young, inexperienced investors with flashy gimmicks on its app that treat stock investing like a game.

(Excerpt) Read more at cbsnews.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: robinhood; sec
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It's OK, they won't do it again and a little Leftie Lie never hurt anyone ...
1 posted on 01/30/2021 9:19:10 AM PST by Navy Patriot
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To: Navy Patriot

When does _somebody_, _anybody_ go to jail for fraud?


2 posted on 01/30/2021 9:20:38 AM PST by cgbg (A kleptocracy--if they can keep it.)
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To: Navy Patriot

Old news, over a year ago. It had to do with disclosures about funneling the trades to select HFTs who gave them a kickback.

They just changed the fine print disclosures, (which no one reads anyway,) and they were good to go.


3 posted on 01/30/2021 9:24:44 AM PST by Fido969 (,i.)
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To: Navy Patriot

SEC should shut down naked shorts.


4 posted on 01/30/2021 9:25:17 AM PST by dynoman (Objectivity is the essence of intelligence. - Marilyn vos Savant)
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To: Navy Patriot

This whole story is wrong. Redit and Robinhood don’t have enough money behind them to cause this situation. There is a much bigger player in the market. Someone like China, could be attacking our market and our short sellers by coordinating an attack on a few stocks. You need Billions of dollars to cause this situation. If ten thousand little guys throw a thousand dollars at this, they don’t make a dent. Trust me, there has to be a large player here. And the feds can figure out who that player is.


5 posted on 01/30/2021 9:27:38 AM PST by poinq
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To: Fido969
Congratulations


6 posted on 01/30/2021 9:33:36 AM PST by Navy Patriot (Celebrate Decivilization)
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To: poinq
Honest question: Are you saying that 1000s of millennials in their basements spending their $600 Stimulus checks on GameStop couldn’t have this impact? It would take Billion dollar hidden investors as well?

If so, this could present systemic risk to all of us. Correct?
7 posted on 01/30/2021 9:33:36 AM PST by Jan_Sobieski (Sanctification)
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To: Navy Patriot

“””Robinhood takes a user’s stock order and sells it to a larger trading firm that executes the trade, a process known as “payment for order flow,” the SEC order states.

Robinhood made no mention of payment for order flow rates, federal regulators said, at a time when the company was rapidly growing. While Robinhood markets its services as “commission free,” the SEC claims that customers in reality received inferior trade prices”””


OK SEC, if you are going to fine Robenhood $65 million for this practice, then you also better start fining the many other brokerage firms who have ZERO commission fees.


8 posted on 01/30/2021 9:34:59 AM PST by Presbyterian Reporter
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To: Navy Patriot

65 Million to these white liberal ‘elite’ crooks is like five bucks for me. It’s NOT even a slap on the wrist.


9 posted on 01/30/2021 9:36:18 AM PST by GOPJ (The ugliest most vile conspiracy theories in the last decade were the lies against President Trump)
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To: poinq

Or maybe it really is a case of the hobbits ( remember that term?) having figured out how to game the Orc’s own game, so now Stzrok’s wife, Sauron , newly appointed dark lord of the SEC, is striking back.


10 posted on 01/30/2021 9:36:28 AM PST by Sirius Lee (They intend to murder us. Prep if you want to live and live like you are prepping for eternal life)
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To: poinq

While there are lots of little guys throwing a few thousand around there were a lot of big daytraders in there. One guy threw in $200k to buy about about 28,000 shares at $7 a piece.

While I doubt they could have held the line originally the press hype made the whole thing snowball and got everybody in (including Elon Musk and Mark Cuban who are throwing in a few millions for the lol’s)

And this is ultimately the hedge fund’s fault as they had sell contracts for something like 130% of the AVAILABLE SHARES! That meant they planned on churning the stock which made it easier for the Reddit WSB guys to corner the market and setup a mini monopoly.


11 posted on 01/30/2021 9:37:10 AM PST by Skywise
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To: Presbyterian Reporter

“”” process known as “payment for order flow,””””


Also, the way to avoid being scammed by the above process by the brokerage firms is to place ‘limit’ orders when you buy or sell.

When a person places a ‘market’ order to buy or sell, they are subject to the brokerage firm buying at the highest price offered or selling at the lowest price offered.


12 posted on 01/30/2021 9:38:30 AM PST by Presbyterian Reporter
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To: dynoman
SEC should shut down naked shorts.

I believe shorts should require reasonable cash deposits up front.

13 posted on 01/30/2021 9:38:57 AM PST by Navy Patriot (Celebrate Decivilization)
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To: Navy Patriot

Old news, small fine...they likely knew they’d get the fine and priced it in in advance.


14 posted on 01/30/2021 9:39:30 AM PST by CincyRichieRich (WHEN TYRANNY BECOMES LAW, REBELLION BECOMES DUTY 1-6-21, American Revolution II Began)
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To: CincyRichieRich
Congratulations


15 posted on 01/30/2021 9:42:59 AM PST by Navy Patriot (Celebrate Decivilization)
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To: Navy Patriot

“””I believe shorts should require reasonable cash deposits up front”””


Such is the case for an individual investor. If you short a stock, the brokerage firm will require that you have enough assets in your account to cover any margin calls on the shorted stock.


16 posted on 01/30/2021 9:43:37 AM PST by Presbyterian Reporter
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To: Navy Patriot

How did I miss the point?


17 posted on 01/30/2021 9:45:38 AM PST by Fido969 (,i.)
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To: poinq

Mets owner, Steve Cohen maybe


18 posted on 01/30/2021 9:45:48 AM PST by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery )
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To: poinq

Mets owner, Steve Cohen maybe


19 posted on 01/30/2021 9:46:38 AM PST by OafOfOffice (W.C:Socialism:Philosophy of failure,creed of ignorance,gospel of envy,the equal sharing of misery )
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To: Navy Patriot

But playing the stock market is a game.


20 posted on 01/30/2021 9:49:04 AM PST by Track9 (English language instruction in china is sponsored by the CCP to facilitate espionage. )
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