Elon Musk makes another accusation against the Securities and Exchange Commission, alleging that the federal agency leaked information about a federal investigation.
(Photo : JIM WATSON/AFP via Getty Images)
The war between Elon Musk and the Securities and Exchange Commission rages on, with the Tesla CEO accusing the federal agency of leaking information about a federal probe via his attorney. Musk alleged that the SEC leaked the details about the investigation in retaliation against him for publicly criticizing the federal financial regulators.
Musk's attorney Alex Spiro wrote a letter to U.S. District Judge Alison Nathan on Monday, February 21, detailing the Tesla CEO's accusations. Spiro noted that it has become clearer and clearer that the SEC is out to retaliate against his clients for exercising their First Amendment rights, the most recent of which came when Musk criticized the Commission on the public docket and by petitioning for relief from the Court.
Spiro's letter comes just four days after Musk made his initial allegations against the SEC. Musk accused the agency of engaging in harassment by making unrelenting investigations on him and of trying to chill his right to free speech. He also blasted the Commission for neglecting its duties to remit $40 million to Tesla shareholders, fines that Musk and the company previously paid to the SEC to settle securities fraud charges.
Musk accuses SEC of leaking information
Spiro did not specify in his letter what type of information or which investigation may have been leaked by the regulatory agency and to whom. Spiro noted in his letter that at least one SEC member had leaked "certain information regarding its investigation," although Musk's attorney did not provide any supporting evidence for this allegation.
Monday's fiery letter is just the latest chapter in a saga that started in September 2018. The conflict between the SEC and Musk began when the agency charged the Tesla CEO of making "false and misleading" statements to investors.
The charges stemmed from Musk posting a message on Twitter in August 2018, telling his followers that he had secured private funding for a massive buyout of Tesla at $420 a share. Tesla's stock seesawed all month as a result, with investors waiting for the deal that Musk alluded to in his tweet. Musk's post proved to be false as the private buyout did not materialize.
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That tweet proved costly for Musk and Tesla as the two parties were ordered to pay $20 million in fines each by the SEC as part of the settlement agreement. Musk was also forced to step down as chairman of Tesla for at least three years.
SEC's Steven Buchholz had already replied to Musk's earlier allegations on Friday, February 18, saying that the agency was already making progress on distributing the $40 million fines to shareholders, a task he characterized as complex. Buchholz added in his letter that the SEC expects to submit to the court for approval a "proposed plan of distribution" by the end of March 2022.
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