First 50 cent had rumors he was dating Chelsea Handler, now he’s following in the footsteps of Martha Stewart, someone needs to check on him.  50 Cent tweeted to his followers (all 3,820,910 of them) about a company called H & H imports.  50 told his followers that they could double their money if they bought the stock.  There’s only 1 problem with all of this, 50 is a partial owner of H & H imports.  It’s estimated by ABC7 that 50 would have earned at least $8.7million on his 30 million shares of stock.

The Actual Tweet:

50 tweeted “”You better get in now TVG I’m never saying this again. Watch how this company blows up. Follow my lead there [sic] going to get bigger trust me even if its  a small investment it will pay off,” (according to allhiphop.com).  Additionally Foxnews reports he also tweeted, “You can double your money right now. Just get what you can afford” and “They are no joke get in now”

SEC Violation

There are strict, and often confusing, rules that dictate what someone can say or do with their stock and their company.  One of these rules includes who you can market to, how you can market your stock, and how many shares you can offer.  Because these rules are confusing, it is best to consult an attorney (the rules are different for a small stock sale to people only within your state, while a large IPO has its own share of problems).  However, whenever someone attempts to “manipulate the market price of securities” they are likely to be investigated.  This is also commonly referred to as “pump and dump” when people pump up a stock price and then dump it at the higher price. 

The one saving grace that 50 cent has is that he did not sell the stock when it hit a new high.  If 50 had sold the stock after his tweet, and earned himself a quick $8million, he would undoubtedly face the scrutiny of the SEC.  Since the original tweet, 50 cent has tried to back peddle by telling his followers that they need to be careful with their investments, that they should talk with a financial advisor, and that he is not any type of financial advisor.