It appears that the ongoing battle between the SEC and Tesla CEO Elon Musk is far from over. In a letter to New York Judge Alison Nathan on Monday, Musk’s attorney, Alex Spiro, accused the Securities and Exchange Commission of leaking information from its investigation.
Spiro noted that these leaks appear to be reprisals against the CEO, who has been openly critical of the Securities and Exchange Commission in the past. Spiro did not provide the name of the SEC employee who allegedly leaked information in his letter, but argued that such actions highlight the agency’s retaliatory nature toward the Tesla CEO.
“Based on information and belief, having submitted a February 17, 2022 letter to this Court regarding the conduct of the Commission, at least one member of the SEC’s staff responded by leaking certain information regarding its investigation. This leak is emblematic of the improper retaliatory behavior that has caused the My letter: The Securities and Exchange Commission is retaliating against Mr. Musk and Tesla, without responding to principle or law constraints in doing so,” the letter Read.
In a separate letter, Spiro also stated that some SEC employees should “keep their records and equipment.” The lawyer further indicated that he reported the matter to the Office of the Inspector General at the Securities and Exchange Commission. The Securities and Exchange Commission, for its part, had not issued a response to Spiro’s allegations as of this writing.
“No denial is imminent yet. Until the Court is notified of the premises and is able to address the alleged misconduct before it, we are now respectfully seeking on record assurance that the Commission has not leaked details of the investigation in violation of its rules and policies and is otherwise acting in accordance with the law,” Spiro pointed.
Musk and the Securities and Exchange Commission have shut out in the past, particularly after the CEO failed to “secure funding” in 2018, resulting in a massive $40 million fine that will be distributed to TSLA shareholders. Earlier this month, Musk accused the Securities and Exchange Commission of presumably neglecting her duties To transfer $40 million to TSLA investors. Spiro also argued that the SEC was targeting both the CEO and Tesla with a rigorous investigation aimed at curtailing the executive branch’s free speech rights.
The Securities and Exchange Commission eventually responded to the Tesla CEO’s accusations. In a letter sent last Friday, Stephen Buchholz of the Securities and Exchange Commission’s San Francisco office denied that the agency was taking too long to distribute Musk and Tesla’s $40 million fine to TSLA shareholders. Buchholz argued that the process involved in distributing money is complex, but that the plan of action should be to get the job done Ready around March 2022.
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