SEC To Distribute $ 40 Million To Investors After Elon Musk's Threat

thecekodok

 The U.S. Securities and Exchange Commission (SEC) regulator has sought a judge’s permission to distribute US $ 40 million to investors derived from a 2018 civil settlement related to Elon Musk and Tesla Inc.


It is common knowledge that Musk's lawyer, Alex Spiro, has accused the SEC of ‘breaking promises’ by urging him to repay money to investors, as well as claiming that the regulator tried to obstruct his client’s freedom of speech by conducting ‘endless’ investigations.


As a result, the SEC in a court filing asked to distribute the payments in a ‘fair and reasonable’ manner whose value has so far increased to $ 41.2 million in interest.


For now, Spiro has not commented on the SEC's action.


As a scan, Musk and Tesla were each ordered to pay a $ 20 million civil fine and Musk had to resign as chairman of Tesla, in a bid to resolve an SEC allegation that he had defrauded investors on Aug. 7, 2018, with his tweet ‘guaranteed funding’ for took over his electric car company personally.



Later in response, Musk stated the SEC deliberately ‘used’ the order to restrict his right to speak as punishment to his volume of speech against the government.


Accordingly, Musk formally asked to terminate the order, adding that he felt pressured to accept it.


In a statement, Musk said he did not lie to shareholders and signed the consent order to ensure Tesla’s survival.


U.S. Manhattan district judge alison Nathan has enforced the decree and needs to approve the SEC’s distribution plan.


Musk’s tweet states that payments will be made to Tesla investors within 1 to 2 days.


The SEC filed the proposed plan 10 hours after Musk asked to rescind the consent decree.