The Atlas Trading SEC Lawsuit Case was dismissed on March 20, 2024. On June 10, 2024, the Government appealed this decision. (Update) The Supreme Court is currently reviewing the case of Kousisis v. United States, which could affect the Atlas Trading case. The Supreme Court’s ruling could either uphold or overturn the ruling against Atlas Trading.
Here’s what originally happened. On 12/14/22, the Securities and Exchange Commission (SEC) filed a lawsuit against Atlas Trading and @MrZackMorris (Edward Constantinescu) for allegedly scamming investors out of $100 million. According to the SEC Atlas Trading lawsuit, they allegedly carried out a scheme involving the coordination of share purchases, promotion to their followers, and subsequent sales for substantial profits.
The Atlas Trading lawsuit also included the following defendants:
- Perry Matlock, a/k/a “PJ Matlock“
- Thomas Cooperman, a/k/a “Tommy Coops“
- Gary Deel, a/k/a “Mystic Mac“
- Mitchell Hennessey, a/k/a “Hugh Henne“
- Stefan Hrvatin a/k/a “LadeBackk”
- Daniel Knight, a/k/a “Deity of Dips.“
- John Rybarcyzk, a/k/a “Ultra Calls,” a/k/a “The Stock Sniper”
Read the Atlas Trading SEC lawsuit here.
Here’s a video from Hugh Henne on the case dismissal.
Atlas Trading was a top trading Discord during the COVID-19 pandemic and the GameStop meme stocks craze between March 2020 and April 2021. One could argue that they created the FinTwit (Financial Twitter) phenomenon. Everywhere you looked on Twitter (X), @MrZackMorris, a/k/a Edward Constantinescu, had his meme face popping up, promoting the latest get-rich-quick penny stock. He seemed to be the face of Atlas Trading.
How Their Alleged Scheme Worked
Here’s how the Atlas Trading alleged scheme worked. @MrZackMorris (Edward Constantinescu) would purchase large positions in XYZ penny stock and then hype XYZ stock on Twitter. Then, in the Atlas Trading Discord and on Twitter, the “meme faces” would promote the stock and how it was “going to the moon.” These meme faces were allegedly also involved in positions at XYZ company before the pump. Once they allegedly inflated the stock, they allegedly sold it before their followers could, and then the meme faces made large profits.
Social Media
The social media craze has made it easy for scammers to pump and dump stocks on social media profiles and Discord. This isn’t exclusive to the Atlas Trading lawsuit and the stocks that they allegedly promoted. These stock-pumping schemes are rampant in the Bitcoin and pot stocks sectors. Many people will say that Bitcoin isn’t a pumped sector, and charts don’t matter. The reality is that all stocks have charts, and all charts matter.
There’s a lot of potential money to be made trading penny stocks and volatile sectors, but the key is knowing how to read the charts. When a trading guru promotes a stock or sector, traders can capitalize on their recommendations if they know how to read charts and plan their entries and exits accordingly.
Therefore, pumping and dumping stocks is wrong, and companies like Warrior Trading have been fined millions of dollars for engaging in this practice. However, money can be made if you watch what these gurus promote and capitalize on the momentum.
Atlas Trading Discord
Atlas Trading’s Discord was among the most active in the trading industry at the time. They had many channels and people posting in their rooms, creating the illusion of being the place to be in the industry. The same was true with Twitter. They were the guys that Twitter traders wanted to be like. It was wild to watch this phenomenon.
Atlas Trading Stocks
The Atlas Trading lawsuit alleged they were a scam, but I must say it. How did anyone fall for this? These guys all hid behind meme profiles. People bought Atlas Trading Stocks that they promoted without doing their due diligence.
I’m unsure if @MrZackMorris ever posted a stock chart mapping support and resistance levels. Yet, people fell for this. It’s wild to think about.
Don’t Take Investing Advice From Memes
It may seem absurd, but do not listen to investing or trading advice from meme accounts. The reality is that most traders are not professionals or financially accredited. They are just people buying and selling stocks. So, why do people unthinkingly follow what they say?
FOMO Trading is the main reason new traders lose money by following meme accounts and trading gurus. They aim to generate substantial trading profits, similar to those of other traders. However, they don’t realize that it takes money to make money. Additionally, some of these trading gurus employ unethical trading practices that give them an advantage in generating substantial gains.
Atlas Trading @MrZackMorris Twitter
@MrZackMorris was Mr. Financial Twitter. The guy had one of the most entertaining profiles in the trading industry, all while hiding behind Zack Morris’s profile pictures. Zack was the leading character in the TV series Saved by the Bell. @MrZackMorris even had a pinned voice tweet from Mr. Belding promoting him for a while.
Many traders took financial advice from a guy hiding behind a Zack Morris meme account. You can’t make this story up. For a while, no one knew what he looked like or that his name was Edward Constantinescu. He would post pictures of himself with his Atlas Trading pals on private jets and fancy vacations; however, he would never show his face.
The man became a Twitter legend, and trading on Discord began to gain popularity everywhere. Atlas Trading’s followers and many of these groups couldn’t get enough of the phenomenon. They wanted to be a part of their crew. It felt like overnight that all these Discords started dominating Twitter, and everyone seemed to be acting like the second coming of Mother Teresa.
Circle J*RK
The whole Financial Twitter phenomenon bothers me when I discuss it. I will be a bit crude when I say this, but it all felt like one big “Circle Jerk” on the Blue Bird Network (Twitter). Everyone was sucking on each other’s Teats, it seemed. “Look at me and how great I am. Take a look at my impressive trading system or indicator. Or, look at how awesome I am by teaching you my latest and greatest trading system for FREE on YouTube.
Were people giving their trading secrets away for free out of the goodness of their hearts? Or were they making money on the back end by promoting each other through affiliate and cross-promotion networks?
This BS game was what drove me crazy on Twitter. People fell for this garbage and would jump on the circle jerk train. Many of these promoters sucked on Atlas Trading’s teats the whole time. Then, when the Atlas Trading lawsuit happened, they seemed to disappear completely. Some Discord servers are still around, but the hype has largely disappeared overall.
They Were Who They Were
I don’t agree with Atlas Trading or what they allegedly did, but I appreciate that they were who they were, and I must admit they were entertaining. They didn’t kiss anyone else’s butts. If your eyes were opened, you knew what you were getting with them.
When the Atlas Trading lawsuit was filed, many of their followers acted as if they didn’t know it was an alleged scam. They spent a lot of time hanging around the Atlas Trading guys and didn’t know they were alleged scammers? Come on now. Let’s be real. They knew, and many disappeared because they couldn’t ride on @MrZackMorris’s coattails anymore.
Atlas Trading didn’t bother me because I saw it for what it was. The Blue Bird Network, a circle jerk of trading pretenders, was the one that bothered me. I can’t stand when people act fake. Ok, rant over haha.
@MrZackMorris Instagram
I’m a dude, but I can admit that @MrZackMorris (Edward Constantinescu) is a good-looking guy. It’s crazy to say, but he had a combination of a douchey and charming personality. If you look behind the alleged trading ethics, Edward is a funny guy who is incredibly entertaining.
@MrZackMorris became a real-world meme, which was crazy to witness. He surrounded himself with beautiful women and led a lavish lifestyle. It was outwardly douchey, yet he wasn’t douchey. I can’t explain it. I liked the guy, but never spoke with him or his crew. He was who he was and didn’t pretend to be anything else. Again, this is just my opinion from an outsider looking in.
Final Thoughts: Atlas Trading Lawsuit
Edward Constantine (@MrZackMorris) came back on Twitter. He also has a Discord server called FU Money Club, which charges $100 per month. His tactics have evolved, and he’s posting more charts and technical analysis to help people trade effectively. His trading gains also appear very profitable, so he’s a successful trader. The Atlas Trading guys seem to have gone their way, so who knows if they will get back together?
The Atlas Trading SEC lawsuit was officially dismissed on March 20, 2024. From a personal point of view, I’m still in awe of what those guys allegedly pulled off. My brain can’t comprehend how many people were fooled by it. I’ll say it again. Many people lost money in the stock market by following random, meme-based Twitter accounts. You can’t make this story up. Who knows?! There may be an Atlas Trading movie someday.
Frequently Asked Questions
What Happened With Atlas Trading?
Atlas Trading’s lawsuit was dismissed on March 20, 2024. In December 2022, the SEC charged Edward Constantin and seven other members of Atlas Trading with scamming investors out of $100 million since at least January 2020.
How Do I Join Atlas Trading?
Investors cannot join Atlas Trading because the SEC shut it down in December 2022.
What Happened to Tommy Cooperman?
Is Atlas Trading Legit?
In December 2022, the SEC shut down the company for running a pump-and-dump scheme that cost investors $100 million. The case was dismissed on 3/20/24.
How Twitter Influencers Used Penny Stocks to Dupe Retail Investors?
Twitter influencers can dupe retail investors into buying penny stocks by creating hype. They enter large positions and then create FOMO by promoting the stock to their followers. Once the buyers jump in, the scammers sell their large positions, which causes the price to drop dramatically.
