Connect with us

US

Taxi medallion lender bought glowing news stories to pump up its stock price, SEC alleges

Published

on

Shares of * Medallion (MFIN) immersed 57% to $3.65 in trade.

According to a complaint on Wednesday in Manhattan federal court, Medallion and COO Andrew Murstein proposed a California media plan to raise positive stories about Medallion in various locations and create fictitious identities so that rumors of hostages appeared credible.

The SEC separately said Medallion and Murstein and the bank’s fraud unit were inflated to offset losses from taxicab loans, and that Murstein fired the firm after refusing to prohibit the valuation policy.

Medallion, Murstein and their lawyer did not immediately respond to comments requests. An attorney for the media’s governor Ichabodi Cranium Inc and its owner Lawrence Meyers did not immediately respond to a similar request.