Will 50 Cent Face Investigation by the SEC for Stock Tip Tweet?

Born Curtis Jackson, rapper 50 Cent might have made a bad move in tweeting to his followers with a stock tip improperly. In spite of deleting and then re-tweeting proper disclosure afterwards, the profits he earned from that tweet may not be worth what he faces in legal troubles from the SEC.

According to the Entertainment blog on Fox News, the hip-hop star last weekend posted a tweet of "You can double your money right now. Just get what you can afford." He later followed that message up with, "They are no joke get in now" about a company named H&H Imports. It turns out he received 30 million shares of stock in a private transaction, which wasn't disclosed. Oopsy.

What? 50 Cent didn't give full disclosure? Later, and possibly on the advice of his legal advisors, 50 Cent then deleted his previous tweets and replacing them with the much wiser-sounding "I own HNHI stock thoughts on it are my opinion. Talk to financial advisor about it." And "HNHI is the right investment for me it may or may not be right for u! Do ur homework," but the damage may have already been done. This saddens me. After reading "The 50th Law," I'm now a fan of 50 Cent, not of his past, but the man he became.

Thanks to 50 Cent and his glowing endorsement, stock prices for H&H Imports closed Monday at 39 cents a share, netting the rapper a cool $8.7 million in profit. SEC regulations are strict and literal in how an endorsement can be used to influence potential investors. Laws exist which require those who own a recommended stock to reveal such ownership, and even when and if those stocks will be sold, after promotion.

Other coverage of 50 Cent, and his endorsement of H&H Imports reads rather positive. After all, it was his getting involved with Vitamin Water that made the product as successful as it is now. But that could also just as easily be due to Glacieu having an excellent product.

Before 50 Cent is decried as "the rich" and "he'll get away with it," remember: If the SEC took Martha Stewart down with relatively little effort, as well Leona Helmsley, how much of a chance will rapper 50 Cent stand? What's he paying his lawyers for, if he's not going to seek out their guidance? Representatives for the SEC are neither confirming or denying whether 50 Cent aka Curtis Jackson is under investigation, at this time.

Sources:
Opinion, and
Entertainment blog on Fox News "50 Cent Could Face SEC Investigation for Tweeting Stock Advice, Expert Says" January 12th, 2011
EpicStockPicks.com "H & H Imports, Inc (OTC: HNHI): The Story Behind The Price Rally"