Genius Group (NYSEMKT:GNS) is skyrocketing today after the company announced that its board of directors had appointed former FBI Deputy Director Timothy Murphy to investigate market manipulation and naked shorting behind GNS stock. Murphy will help lead the newly formed ‘Illegal Trading Task Force’ created by the board. Murphy is also a Director of Genius and will work alongside CEO Roger Hamilton and Director Richard Berman.
The group will explore all possible actions to investigate the market manipulation and work hand-in-hand with regulators. Genius stated that the task force was formed after law firms Warshaw Burstein, LLP and Christian Levine Law Group concluded that individuals and/or companies “appear to have sold (but not delivered) a significant amount of the Company’s ordinary shares” in order to artificially lower the share price.
GNS Stock: Genius Creates ‘Illegal Trading Task Force’
Genius’ board has now authorized three actions to investigate the situation. First, the company will move on to the “next stage of the legal process” and explore legal action against anyone reasonably suspected of manipulating GNS stock. Next, the company will issue a special dividend to all shareholders. Genius said this dividend could expose those involved in market manipulation. More details regarding the dividend will be disclosed later.
Finally, the company believes that a dual listing of GNS common stock could make naked shorting more difficult. Genius has not yet decided whether it will utilize a dual listing.
Genius disclosed plans to hold an extraordinary general meeting in the coming weeks to obtain shareholder approval for these actions. At the meeting, Genius will also seek “approval of a reverse stock split and/or stock buyback plan.” Genius management believes all of these actions will discourage market manipulation in the future.
Earlier this month, Genius announced that it had signed a non-binding $7.5 million share subscription and purchase agreement with Global Corporate Finance. New shares will be issued as part of the financing.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.