Source: Wall Street See

Keith Gill, the leader of the meme stock movement three years ago, is still going strong after his return, recently boasting billions of dollars on social media. Bad news is, his trading activities have caught the attention of the Massachusetts securities regulator. Secretary of State Bill Galvin's office spokesperson told the media that the securities division is investigating Gill's behavior, and the investigation is ongoing.$GameStop (GME.US)$The delivery note called on retail investors to buy in, and a new frenzy of meme stock speculation seems to be brewing.

But the bad news is that his trading activity has already attracted the attention of the Massachusetts securities regulator in the US.

A spokesperson for Secretary of State Bill Galvin's office said the securities department is investigating Gill's conduct, and the investigation is ongoing.

On Sunday, Gill posted a screenshot of his trading, which showed that he held 5 million GameStop stocks worth $115.7 million, as well as 120,000 call options expiring on June 21 with a strike price of $20, worth a total of $65.7 million.

On Monday, GameStop's stock price rose 20%. Intraday, the account screenshot shared by Gill showed that he had more than $29.2 million in cash. At the opening of the market on Monday, Gill's GameStop holdings were valued at more than $386 million. On Monday night, he shared another screenshot on Reddit showing that he had not sold any shares.

The US Securities and Exchange Commission (SEC) has been reviewing call options related to GME when Gill posted on social media, but it is unclear whether the SEC is specifically targeting Gill.

In addition to regulators, there have been reports that Morgan Stanley-owned brokerage E-Trade is considering banning Gill from using their platform for trading.

Gill himself has not responded to these investigations.

After the meme stock frenzy in 2021, the Massachusetts regulator fined Gill's former employer, Transamerica Insurance, $4 million, accusing them of failing to properly regulate Gill. As of the end of January 2021, Gill was the Director of Financial Wellness Education for the company.

Under multiple bearish catalysts, overnight GME's US stocks fell more than 5%, and after-hours trading rose nearly 1%.

Editor/tolk