The U.S. Securities and Exchange Commission charged Medallion Financial Corp and its president with fraud for trying to inflate the stock price of the lender to taxicab medallion buyers, amid competition from Uber and Lyft .
The seal of the U.S. Securities and Exchange Commission is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew KellyNEW YORK, Dec 29 - The U.S. Securities and Exchange Commission charged Medallion Financial Corp and its president with fraud for trying to inflate the stock price of the lender to taxicab medallion buyers, amid competition from UberMedallion shares plummeted $3.83, or 45.3%, to $4.62 in morning trading, after earlier falling to $3.50.
According to the complaint, Murstein also fraudulently inflated the value of Medallion's banking unit to offset loan losses, and against his auditor's advice fired a valuation firm that refused to vet the scheme. In a statement, Medallion said it intended to defend against the SEC's "unfounded" charges, and was confident the record would show that the company and Murstein complied with the law.
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