Elon Musk could face criminal as well as civil charges: Harvey Pitt

Elon Musk could face criminal as well as civil charges: Harvey Pitt


DOWN 12%. TWO RETAILERS NOT DOING WELL.>>>HOW ABOUT TESLA, THE SEC SENT SUBPOENAS ABOUT ELON MUSK’S TWEET ABOUT TAKE THE COMPANY FORMER SECURITIES & EXCHANGE COMMISSION CHAIR. HARVEY, WELCOME TO THE PROGRAM. GOOD TO SEE YOU, SIR.>>GOOD TO BE WITH YOU. STUART: WHAT IS IT MUSK COULD HAVE DONE THAT WOULD BE ILLEGAL?>>THERE ARE POTENTIALLY TWO AREAS. THE FIRST IS, HE ISSUED HIS TWEET IN THE MIDDLE OF THE TRADING DAY. THAT’S HIGHLY UNUSUAL AND VERY PROBLEMATIC. USUALLY ANNOUNCEMENTS ARE MADE THE SEC PROBABLY WILL LOOK AT WHETHER HE HAD AN INTENTION TO INFLUENCE THE PRICE OF THE UP AFTER HE MADE HIS TWEET. THE SECOND ISSUE THEY WILL LOOK AT, WHICH IS THE MORE SUBSTANTIVE IN THIS PARTICULAR CASE I THINK, IS WHETHER MUSK COMMITTED FRAUD. ENOUGH TO PAY SHAREHOLDERS $420 A SHARE WAS IN FACT TRUE. THOSE WOULD BE THE TWO ISSUES, BASED ON HIS SUBSEQUENT BLOG POST, IT APPEARS HE DID NOT HAVE SECURED FUNDING, EVEN THOUGH HE SAID HE DID. STUART: OKAY. WITHOUT BEING PEJORATIVE, IF SAID HE HAD, WHAT ARE CONSEQUENCES?>>WE, THE CONSEQUENCES RANGE FROM CIVIL LAWSUIT BY THE SEC SEEKING INJUNCTIVE RELIEF, A COURT ORDER SAYING HE CAN NOT EVER DO THAT TYPE OF THING AGAIN. THE SEC HAS PENALTIES THAT COULD BAR HIM FROM BEING AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY IF A COURT AGREES WITH IT. THE SECURITIES LAWS IS ALSO A POTENTIAL CRIMINAL CASE. SO HE COULD FACE CRIMINAL CHARGES AS WELL AS CIVIL CHARGES. STUART: AGAIN, WITHOUT KNOWING WHERE THIS INVESTIGATION WILL ACTUALLY LEAD AND WHAT AS CEO, THE RUNNER OF THE TESLA COMPANY, IS LIMITED?>>IT IS VERY HARD TO SAY RIGHT NOW. PARTICULARLY BECAUSE HE IS AN OUTSIZED PERSONALITY. HE IS ONE OF THE RARE CEO’S WHO DEFINES HIS COMPANY RATHER THAN THE OPPOSITE. THEREFORE I THINK THE BOARD WILL DO EVERYTHING IN ITS POWER TO TRY AND KEEP HIM IN PLACE, BUT HIS CONDUCT HERE LOOKS VERY, VERY PROBLEMATIC. STUART: FOR MANY YEARS YOU CHAIRED THE SEC. HAVE YOU SEEN ANYTHING LIKE THIS BEFORE AT YOUR TIME IN THE SECURITIES & EXCHANGE COMMISSION?>>NO, I HAVE SEEN A LOT OF STRANGE THINGS BUT THIS MAY BE ONE OF THE STRANGEST THINGS I’VE EVER SEEN. STUART: IS IT LEGAL, IS IT OKAY, SO TO SPEAK TO MAKE THIS ANNOUNCEMENT BY TWEET?>>IT’S POTENTIALLY TROUBLESOME BUT IT IS NOT ILLEGAL AND MY VIEW IS, IT IS NOT THE MEDIUM THE MESSAGE AND THE TIMING AND THE MANNER IN WHICH HE DELIVERED PRIVATIZATION, HOW LONG DOES IT TAKE TO LOOK INTO THAT?>>IT SHOULDN’T REALLY TAKE A LONG TIME BUT THEY WILL NODE TO TAKE TESTIMONY. SO THERE WILL BE TESTIMONY, FIRST DOCUMENT PRODUCTION WHICH, IF THE NEWS STORIES ABOUT SUBPOENAS IS CORRECT, WILL START FAIRLY SHORTLY. AND THEN THERE WILL BE INTERVIEWS. THEN THE AMASSING OF THAT DATA WILL HAVE TO BE ANALYZED AND SO WE’RE LOOKING AT MONTHS, NOT DAYS OR WEEKS. STUART: THAT’S A LONG TIME IN THIS BUSINESS.

78 thoughts on “Elon Musk could face criminal as well as civil charges: Harvey Pitt

  1. Why fox hates Elon musk so much he's doing so many good things rather than sitting infront of camera and uttering garbage 24×7 I think fox is shit mouth piece for oil companies who hate Elon musk

  2. Stfu, a man can't tweet what may be possible for his future?…There's no case here. He did not undermine anyone. Freedom of expression and speech, case closed.

  3. If Elon Musk goes,to jail,
    the jail system will be greatly improved in short order, likely he has not applied his talents to the prison system. If he does. expect improvement in effectiveness and efficiency.

  4. NAZIS IN AMERICA, Watch "Teacher Stands On Her Rights at a Warrantless Internal Checkpoint  – They Hold Her For an Hour" on YouTube 😵😵😵
    https://youtu.be/fkrby5g5wOU

  5. Trying to convict Elon Musk for a tweet but they only convicted one trader in 10 years post-Housing market crash. Interesting

  6. elon musk said he was going to start a website where people could rate journalists. globalists own the MSM so naturally they would want to stop him.

  7. A problem with all this kindersche feel is Bernie madoff
    Because of what he did and what others have done is made the stock market something that people should never get into and the technicality in the status really shouldn't matter when he had the funding
    his intent is to take the company private which they've already started the process of doing that aerugo he has funding now

  8. When he claimed that he was going to retire on Mars…

    When he claimed that we all live within a computer simulation…

    ….it became a deal breaker for me to invest in his company. Besides, Warren Buffett is right that technology will never become an "economic moat" for a nation or shareholders. When they first invented the wheel everybody created one themselves – there's nothing special about your wheel, and besides, we don't feel comfortable about a man who talks crazy or coddles Saudi's.

  9. He loves to hype to increase stocks Baja’s case when he said he had “verbal” approval to build the hyper loop..he’s a man with ideas but can only accomplish through scamming investors for was is genuinly long term human progress but not economically unfortunately

  10. Elon Musk wants to build a 3.6 mile underground tunnel to Dodger Stadium that will cut people’s commute time from one hour to 4 minutes. If it sounds too good to be true that’s because it is. It’s the most typical Elon Musk idea to ever come out of Elon Musk’s brain. “Hey let’s just build an underground tunnel! No more traffic! It’s so easy! I’ll get it done.” He won’t. This tunnel will never happen.

  11. Wow, it is really hard to believe this war against Tesla, oil companies, car companies, dealership networks, mechanic schools, auto parts suppliers, auto parts stores, they all stand to lose a lot if Tesla succeeds so they are on and all out war to make Tesla fail. Unfortunately unless you have not being paying attention, all these companies are going the way of Blockbuster or retail stores or RIM. Electric cars are here to stay. I got rid of ALL gas engines in my garage, the last one was my car, fortunately I make enough money to buy a model 3 now and don't have to wait until electric cars become more affordable like a lot of people have to. To me it makes no sense at all to have any piece of equipment or a car run on a noisy, dirty and polluting gas engine. With electric motors no need to deal with all that crap. Clean and quiet, this is the wave of the future, can't understand why anyone, other than economic factors, will pick a gas engine over electric. There is just no comparison.

  12. The fossil fuel lobby and their cronies just never give up attacking EV's do they.
    Just stop you arseholes. We are not stupid and we know what you are trying to do.

  13. If Martha Stewart served time he should too, and much longer. He's like a brat in a candy store. Get rid of him so Tesla can be a real company. So he got lucky once with Pay Pal — even a broken watch is right twice a day.

  14. Just finished watching the movie "Inside Job" with Matt Damon about the 2008-2009 debacle. The Wall Street Club uses our laws and government agencies to support their interests – not us. They are trying to take down an amazing creative talent. Very upsetting.

  15. Musk is being targeted simply because he's a threat to some major corporations and families. He is doing things and bringing products to market that, if left "unchecked" could severely influence the future profits of these companies and families. They're trying to put him out of business, one way or another, so that they can continue dominating.

  16. Why do I keep hearing this bogus claim that it will cost $70 billion for "the buyout". When did Musk ever say anything about a buyout? He didn't. He said that all current shareholders will have the opportunity to maintain their investment in Tesla. So how many are actually going to sell? Well, we know for a fact that Musk isn't going to sell his 20% because he said so.

    Musk said that he estimates that 2/3rd of current shareholders will keep their shares. Well, there are about 170 million outstanding shares. And there are 35 million shares sold short. That means that there are 205 million shares owned by someone. (The short sellers sold their shorts to someone who believes that they own their shares, right?)

    So, 2/3 of 205 million is about 136.7 million shares that won't be sold and 68.3 million that have to be bought. Well, 35 million of those will have to be bought by the short sellers who will be forced to buy them back, right? That leaves only 33.3 million shares that need to be bought to complete the transaction. That amounts to $14 billion, not the $70 billion that people keep claiming. So, why do they keep claiming that this is a $70 billion deal when it's not? And that this will be the biggest deal in history and nobody has that kind of money.

    I did the same calculation for 25% selling instead of 1/3 and I come up with $6.825 billion required to complete the transaction.

    If 1/5 of the shareholders sell, it'll cost $2.52 billion.

    if 1/6 of the shareholders sell, then, well 1/6 is less than 35 million so there will still be $350 million of shorted stocks. I guess 833,000 shares won't be able to be converted to the fund. That means that it's actually possible that it's impossible for everyone who wants to will be able to keep their shares. If that happens, how will they pick who doesn't get to keep their shares? Will Tesla issue 833,000 new shares so that everyone can keep them? That would raise $350 million. To be fair, that's what I believe that Tesla should do in the event that not enough people want to sell.

    So, it's actually possible that Tesla need no funding to take Tesla private and it's even possible that the only way they can be fair is to issue more shares so everyone can keep their investment in Tesla.

  17. Musk said, "considering". I think that means that he's just thinking about it. So, whether funding was secured or not, it's just something he's, "considering". In other words, he wasn't serious about it, but might become serious about it.

    I believe the stock went up because of the news about the Saudis buying 5% of Tesla on the open market and has nothing to do with Musk's tweet. And now it's going down because of the SEC investigation. So, if anything, it's the SEC that has influenced the stock price, not Musk's tweet.

    Maybe the SEC should be investigated for stock manipulation.

    My theory could easily be proven by checking the time of Musk's tweet and the timing of the news about the Saudis and when the stock first started going up.

  18. Pimp Musk is done. So is his electric toy company. It's not a car. It's a toy. Plug it in and drive few miles down a nice flat pavement road.

  19. Why am I not surprised to see this headline on FOX.

    It keeps looking like they are in the pocket of the oil companies.

    You know what country has the most to gain by global warming? Russia. Arctic circle is exposing oil reserves.

    Know who backed out of the climate accords early in his presidency?

    Why not speculate on that? But then FOX also gets advertising money from Ford and GMC.

  20. Yeah, I'm sure Elon Musk is going to be arrested on the say-so of some silly nook short stock scrambler, right after Donald J. Trump is executed for treason.

  21. fox news lol always attacking elon yet these baby boomers care only about money and getting rich off stocks have never invented shit in their life or wanted to improve anything. What a terrible, short-sighted generation boomers are no wonder steve bannon hates them

  22. Dear Elon.. I warned you that they will make you into a scapegoat.. and told you that there is no way to stop them from making you the scapegoat.. but I did tell you that you have the choice in what kind of scapegoat you will become.. don't let them choose for you. Be the scapegoat that you choose to be. Go out in style.. so to say.

  23. I could get struck by lighting. I may eat an ice cream cone. Would not waste time on the reporting. "Stupid is, is what stupid does"

  24. Just trow eggs and tomatoes on this guys when they came from studio on the street, they do not deserve any less than that!
    Shame on you Fox Business. This is already disturbing!

  25. Big oil is behind the shorts on Tesla for obvious reasons. Planing our way ahead as a civilization and species by the quarter is profoundly foolish. It worked in the past, but to say that we are in uncharted waters is a huge understatement.

  26. Elon jail time………. Good
    Elon mask don't make his stuff he is just a man with money and people think he is a genius but he aint.

    But he is still billions way better then me……..

  27. Taking about send someone to jail for a tweet.
    I guess Elon have to type 50 outrageous tweets a day for a couple of years to get away with it.

  28. Tesla fan buttboys have arrived. How many of you buttboys here have worked at this company? What's that? None. Then shut the fuck up.

  29. I wonder if he is still making flame throwers? $10 bucks says he made a dumb mistake…that's it. Yes, even the smartest guys make dumb mistakes…like having a Twitter account. How many times has the Twitter platform cost someone their career for a stupid tweet? How many? Anyways Tesla has a bunch of red tape on it since it went public and Elon has had trouble controlling production costs…it would probably be good if he let it split away and refocused his interests in a new private company. He could still be a majority shareholder in Tesla and let some of the less imaginative folks run the beta company. I think he has more success with a smaller staff and a smaller amount of products to focus on at any given time. Elon is an engineer, not an MBA, the guy just wants to build stuff. He should partner with those Sharks suits.

  30. our media jumps on shit like flies… bunch of rabid dogs just looking for meat, really. All these scared people over one small tweet. Elon is a very revered mind and they are treating him like he's koo-koo

  31. Fox Business, I have a novel idea… STOP giving air time to paid trolls. What's fraudulent is these paid trolls being allowed to continuously bad mouth Elon and his company/ies to inflict damage. Elon is not stupid, now go away.

  32. Wow. Great, this is an amazing Video!!! You should slice the important points and snippets with Threelly SmartView Chrome extension – it’s Free to use: https://chrome.google.com/webstore/detail/threelly-smartview-for-yo/dfohlnjmjiipcppekkbhbabjbnikkibo/ After you slice, it's really easy to share the short snippets on social media.

  33. @0:21, "Well there are potentially two areas. The first is he issued his tweet in the middle of the trading day."
    Please show me where it says that it's illegal to release information about a company during the middle of the trading day. As far as I know, even if it's unusual, it's not illegal. If the SEC doesn't want this to happen again, then they should make it illegal.

  34. Good, fuck teslas. Self driving shit cars would destroy car culture and we would just be a bunch of fat idiots not paying attention to anything just being driven around by our cars like in wall e

  35. This is conjecture and speculation to interpretation of Elon's musings on social media. Lets look at it again.
    Aug 7th 2018 11:48 AM
    "Am considering taking Tesla private at 420.00.
    Funding secured."
    #1. Nothing wrong with considering such.
    #2. 420.00 a share is a reasonable figure.
    #3. "Funding secured" could very well mean that Elon's had several interested suitors past and or present who have conveyed OPEN OFFERS on the table should he ever want to CONSIDER the idea of taking Tesla private.
    It's unfortunate America is set on destroying Elon Musk, and his American Dream. He could of set out to build Tesla anywhere in the world. He chose America. He is our best athlete in the technologies race of EV'S, solar, and space. You think America would be appreciative of his hard work.

  36. This shit is way worse than Martha Stewarts stunt…but she is a women scapegoat so she went to jail… let's see this guy not do time in Jail for doing way worse

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