- The stock price of Medallion Financial Corp (NASDAQ: MFIN) fell by over 45% during intraday trading today. This is why it happened.
The stock price of Medallion Financial Corp (NASDAQ: MFIN) fell by over 45% during intraday trading today. Investors are responding negatively to a Reuters report that the U.S. Securities and Exchange Commission (SEC) charged Medallion Financial and its chief operating officer (COO) with scheming to fraudulently inflate the stock price of the lender to taxicab medallion buyers
In a complaint filed today in Manhattan federal court, it was reported that Medallion and COO Andrew Murstein paid a California-based media strategist to place positive stories about the company on various websites and also create fake identities to make the opinion pieces appear credible to investors.
Plus the SEC said Medallion and Murstein separately and fraudulently inflated the value of the company’s banking unit in order to offset losses from taxicab loans and that Murstein fired a valuation firm when it refused to vet the scheme.
Reuters said that a lawyer for the media strategist Ichabod’s Cranium and its owner Lawrence Meyers did not immediately respond to a similar request.
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