Article Image

IPFS News Link • DOJ-Department of justice

Musk Under DoJ Fraud Investigation

• moneymaven.io by Mike Mish Shedlock

If you had any bit of common sense, you knew this was bound to happen: Tesla, Musk Face Criminal Probe Over Go-Private Statements.

Federal prosecutors opened a fraud investigation after Musk tweeted last month that he was contemplating taking Tesla private and had "funding secured" for the deal, said the people, who were granted anonymity to discuss a confidential criminal probe. The tweet initially sent the company's shares higher.

The investigation by the U.S. attorney's office in the Northern District of California follows a subpoena issued by the Securities and Exchange Commission seeking information from the maker of electric cars about Musk's plans to go private, which he has since abandoned.

The criminal inquiry is in its early stages, one of the people familiar with the matter said. Justice Department probes, like the civil inquiries undertaken by the SEC, can take months. They sometimes end with prosecutors deciding against bringing an enforcement action.


Home Grown Food