Moonlighting under the name Roaring Kitty, Keith Gill became a folk online folk hero for his dedication to the game stop, a struggling video-game retailer at the center of a trading frenzy that sent his share price into the stratosphere.
But now Mr. Gill, a regulator in Massachusetts, wants to know more about his former day job as director of financial well-being education at a registered securities broker and a Boston-based insurance company.
Motivated as part of Mr. Gill’s cheerleading, thousands of small investors pushed the stock to a low of $ 483 at the GSM stop, making Mr. Gill fabulous on paper. A picture he posted on the Reddit Wall StreetBates forum last week shows his gamestop investment at million 48 million, although his actual return cannot be independently verified.
But Mr Gill’s former employer, MassMutual, has told securities regulators in Massachusetts that Mr Gill spent more than a year posting on social media, message online message boards and gamestops on YouTube. The insurer also told regulators that if it had known about Mr. Gill’s outside activities, it would have asked him to stop or possibly fire fired.
Officially known as Massachusetts Mutual Life Insurance Company, Mass Mutual also informed regulators that Mr. Gill had issued a notice on Jan. 21, but technically he was a payday employee and his securities and investment advisory arm, MML Investments. Were by 28. – The week when Gamestop’s shares rose the most.
In particular, Massachusetts regulator Mr. Gill or Mass Mutual is investigating whether any rules have been broken.
William Galvin, secretary of the Commonwealth of Massachusetts, said licensed professionals have a “duty” to inform their employers about their outside activities.
On Friday, Mr. Galvin’s office sent a letter to MassMutual’s general adviser about Mr. Gill’s employment status and whether the company is aware of its outside activities promoting gas stops.
The letter also seeks details about Payne’s “process for identifying undisclosed business activities” and monitoring employee use of social media.
Debra O’Malley, a spokeswoman for Mr Galvin’s office, said Mass Mutual’s response was highly confidential, as the investigation was open. But he confirmed Mr Gill’s departure date and reiterated the company’s argument that it was unaware of his activities.
Ms. O’Malley said MassMutual had told securities regulators that it had previously rejected a request by Mr Gill to do sidework to manage an investment portfolio for a family friend after joining the company in April 2019.
Mass Mutual spokeswoman Paula Tremble said in an emailed statement that Mr Gill was no longer employed by the company and that the matter was under review. She declined to comment further.
Mr Gill, 34, did not respond to requests for comment. He is largely silent, except when talking to the Wall Street Journal. In his story, published January 29, the journal said Mr. Gill had recently worked in marketing for MassMutual.
Mr. Gill has not posted on his YouTube channel since Jan. 22, but he still posts on the Reddit Wall StreetBates forum. On Wednesday, an image was posted to his account that valued his gamestop holdings at more than 8.6 million. The image also shows a cash holding of about 14 14 million.
Gamestop has lost more than two-thirds of its value since closing at $ 347 in January. The stock rose nearly 3 percent to close at 92 92 on Wednesday.
Federal regulators and legislators promise more scrutiny in Game Stop Saga.
Members of Congress have already suggested that they look into the ways in which trading platforms such as Robinhood deal with the rampant retail trade. And the House Financial Services Committee scheduled a hearing on Feb. 18 to discuss the volatility in Game Stop’s shares as well as the impact on the short-selling market, the bearish stock bets that some retail investors were trying to punish.
Treasury Secretary Janet L. Yellen has also asked federal financial regulators, including the Securities and Exchange Commission and the Federal Reserve, to attend a meeting on game stop glitches, the department said Wednesday.
The financial services industry has adopted a number of rules and policies regarding the use of social media by financial professionals in recent years.
The Financial Industry Regulatory Authority Authority – the main self-regulatory body in the securities industry – says financial services professionals should avoid “getting rid of false, misleading, exaggerated statements and content” on social media. FINRA’s guidelines require brokers and other financial services payers to “monitor business-related content” posted by employees.
Mr. Gill’s roaring kitty videos include a disclaimer in which investors should consult a financial advisor before making any decision and “the opinion expressed on this YouTube channel should not be taken as a specific motivation to make a certain investment.”
Andrew Calamari, a lawyer for Finn Dixon & Hurling and former director of the New York office fees for the Securities and Exchange Commission, said it was too early to determine whether Mr Gill had violated any securities rules. But Mr Gill could violate company rules if he does not get permission for his posts on Reddit and YouTube.
“Organizations don’t allow employees to go out and make predictions on stock,” he said of employees who are not analysts. He added that many financial companies also need to disclose if employees have brokerage accounts with other companies to monitor their trading activities.
Mr. Gill, as a securities broker, is registered with the FINRA. His broker registration does not indicate that he has any business activities. Finra rules prohibit brokers from filing incomplete or misleading information about them.
It is not clear if MassMutual has any regulatory issues. Companies may be responsible for failing to monitor employees, but if Mr. Gill obstructs payroll processes to monitor employees’ use of social media, it may not be to blame.
Many small investors who have plowed into GameSapp and other stocks in the hope of hurting short-selling hedge funds should not worry about Mr Gill’s moonlighting activities.
But Mr. Gwyn Lwyn said his and Fisch Stock is investigating the matter to ensure the integrity of the advisory markets and security professionals. He said retail investors need to know everything about the people they invest with or seek advice.
“I’m not trying to curb anyone’s ability to enter the market,” Mr. Galvin said. “The issue here is transparency.”
Nathaniel Popper Contributed report.
