Things are not looking good for the Goblin Gang as online influencer Zack Morris and his cohorts were denied by the Southern District of Texas their motion for a six-month continuance.
Morris (legally Edward Constantinescu) and members of his “gang”: Perry Matlock, Thomas Cooperman, Gary Deel, Mitchell Hennessey, Stefan Hrvatin, John Rybarcyzk, and Daniel Knight, are currently facing the Department of Justice in court in connection with a long-running, social media-based “pump and dump” operation. The group allegedly profited at least approximately $114 million from their scheme from January 2020 to April 2022.
Despite already agreeing to a trial date in October 23, 2023, Morris, Matlock, Cooperman, Deel, and Hrvatin have filed a joint motion to request the court to grant them six more months to prepare for the trial.
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It’s noteworthy that Hennessey did not join the motion and instead “wishes to rely on his right to speedy trial.” The government pursuing the case expectedly opposed the motion, adding the continuance “runs contrary to judicial economy and the public’s interest in a speedy trial on the merits.”
After hearing both manifestations, Judge Andrew Hanna denied the motion for continuance.
This is not the only legal motion that Morris had filed in relation to the case. The controversial online influencer argued in a February filing that one of the counts alleging money laundering should be dropped, claiming that it “fails to allege a legally cognizable predicate act of ‘racketeering’.”
The DOJ opposed Morris’ legal argument, saying plainly that he is wrong in interpreting the law.
Alongside the case against the DOJ, Morris and his gang are also facing an SEC lawsuit for stock manipulation reportedly generating them nearly $100 million in proceeds. The regulatory body said that the group used their online platforms to rally behind a publicly listed stock to raise its price and then would dump their shares once it does.
Back in May, the SEC also sued Francis Sabo, known as Ricky Bobby in the fintwit world, for securities fraud related to the alleged pump-and-dump scheme with the group, also referred to as Atlas Trading.
The agency said that Sabo earned more than $1 million “in illicit proceeds from his participation in this stock manipulation scheme.”
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
