Earlier this month, 50 Cent sent out a tweet encouraging his nearly four-million followers to purchase stock in H&H Imports. H&H’s stock jumped from ten cents to 39 cents following the tweet, and 50 — who happens to own 30 million shares — made more than eight-million dollars. He has since deleted the tweets and replaced them with ones that read, quote, “I own HNHI stock thoughts on it are my opinion. Talk to financial advisor about it. HNHI is the right investment for me it may or may not be right for u! Do ur homework.”
One attorney says the situation has captured the “SEC’s attention,” adding that they would be, quote, “eager to conduct a high profile investigation like this.” Despite the SEC’s willingness to take on the case, it would be difficult to establish that 50 actually committed a crime. Authorities would have to prove that he attempted to manipulate the market, and as one lawyer notes, that becomes very difficult to do if 50 Cent never actually sold any of his shares. If it was determined that 50 had broken the law, he would more than likely be forced to hand over any profits he had made. Jail time could be an option, however, if he was found to have impeded the investigation.