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Elon Musk and his younger brother Kimbal Musk are facing an investigation by the United States Securities and Exchange Commission (SEC), according to information released by The Wall Street Journal (WSJ).
One of the reasons why the SEC began to investigate the founder and leader of Tesla and his brother, has to do with the fact that apparently they violated rules against the use of privileged information.
The WSJ reported that the investigations began last year, after Kimbal Musk sold 88,500 Tesla shares valued at $108 million.
The sale was made a day before Elon Musk published a poll of users on the social network on his Twitter account to determine if he should sell 10% of his Tesla stake, based solely on their opinion.
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.
Do you support this?
— Elon Musk (@elonmusk) November 6, 2021
The Securities and Exchange Commission is investigating whether the CEO of Tesla informed his brother of his plans to publish the post on the social network, as well as communicate about the sale of his shares.
If it was that way, the Musk brothers would have violated the current law stipulated by the SEC, which prohibits businessmen from making any trade based on data that is not available to everyone.
In recent years, The agency has been investigating Musk’s posts on Twitter. Before the investigations of the SEC, Elon Musk told the regulator to carry out a “harassment campaign” against him that exposes him unfairly.
Given the tycoon’s position, the institution denied that its investigations have anything to do with an act of harassment. So far, a ruling on the investigation has not been determined, nor have the possible sanctions that the Musk brothers would face.
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