Zack Morris And Atlas Trading See Criminal Case Dismissed

The criminal case against social media personalities led by Zack Morris has been dismissed without prejudice by the United States District Court. Morris (legally Edward Constantinescu) is in a legal battle for fraudulently earning approximately $100 million from this stock-manipulation scheme.”

Morris defends the case together with his cohorts in the Atlas Trading group: Perry Matlock (aka PJ Matlock), Thomas Cooperman (aka Tommy Coops), Gary Deel (aka Mystic Mac), Mitchell Hennessey (aka Huge Henne), Stefan Hrvatin (aka LadeBackk), and John Rybarcyzk (aka Ultra Calls). Daniel Knight (aka Deity of Dips) is also named a co-defendant as he “aided and abetted” the scheme through his podcast with Hennessey.

The dismissal was granted following Rybarczyk’s second joint motion to dismiss, joined by co-Hrvatin, Matlock, Deel, and Cooperman. The motion was extensively argued, with the United States responding in opposition.

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In the ruling, the Court cited the Federal Rules of Criminal Procedure, which has a provision that permits a party to move for dismissal of an indictment based on defects, including failure to state an offense. The Court’s decision was primarily grounded in the determination that the allegations in the indictment did not constitute a legally recognizable offense under relevant statutes.

Specifically, the Court found that the allegations in the indictment did not meet the criteria for a “scheme to defraud” as outlined in legal precedent, including a Supreme Court ruling. While the defendants were accused of intending to deceive and deprive social media followers of valuable economic information, the Court determined that the scheme alleged in the indictment did not amount to the deprivation of victims’ traditional property rights.

Furthermore, the Court highlighted that the alleged misconduct did not involve the direct surrender of property by victims to the defendants. Rather, investors made independent decisions in the stock market based on misrepresented information, resulting in declines in the value of their investments. As such, the Court concluded that the indictment failed to adequately demonstrate a scheme to defraud within the meaning of relevant statutes.

Consequently, the Court granted the motion to dismiss and ordered the Superseding Indictment to be dismissed without prejudice. This dismissal allows for the possibility of the case being refiled in the future, should the prosecution choose to do so.

The trial involving said defendants, previously slated for October 23, 2023, has been rescheduled to April 1, 2024. A sentencing hearing is also slated for Knight on July 29, 2024 after he entered a guilty plea last year.

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.