re: DOJ To Investigate Retail Day Traders For Possible Market Manipulation

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I'm gonna need a bill of particulars counselor

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15 U.S. Code § 78i - Manipulation of security prices

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(a)Transactions relating to purchase or sale of security
It shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange—

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(2)To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.

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1. you must engage in a series of transactions (doesn't even require a 2nd person)
2. with a security or swap of a security
3. creating actual or apparent trading of that security OR changing the price of that security
4. if your transactions are meant to induce others to buy/sell the security

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(3)If a dealer, broker, security-based swap dealer, major security-based swap participant, or other person selling or offering for sale or purchasing or offering to purchase the security, a security-based swap, or a security-based swap agreement with respect to such security, to induce the purchase or sale of any security registered on a national securities exchange, any security not so registered, any security-based swap, or any security-based swap agreement with respect to such security by the circulation or dissemination in the ordinary course of business of information to the effect that the price of any such security will or is likely to rise or fall because of market operations of any 1 or more persons conducted for the purpose of raising or depressing the price of such security.

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1. A person/entity buys/sells a security
2. That induces the purchase/sale of that security
3. By circulating information that the price of the security will rise/fall
4. That rise/fall is due to the behavior of a person/entity
5. For the purposes of raising/lowering the price of the security

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(i)Limitations on practices that affect market volatility
It shall be unlawful for any person, by the use of the mails or any means or instrumentality of interstate commerce or of any facility of any national securities exchange, to use or employ any act or practice in connection with the purchase or sale of any equity security in contravention of such rules or regulations as the Commission may adopt, consistent with the public interest, the protection of investors, and the maintenance of fair and orderly markets—

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(1)to prescribe means reasonably designed to prevent manipulation of price levels of the equity securities market or a substantial segment thereof; and

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(2)to prohibit or constrain, during periods of extraordinary market volatility, any trading practice in connection with the purchase or sale of equity securities that the Commission determines (A) has previously contributed significantly to extraordinary levels of volatility that have threatened the maintenance of fair and orderly markets; and (B) is reasonably certain to engender such levels of volatility if not prohibited or constrained.

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I'm not going to get into the regs, but I assure you SOME regulation pursuant to this section covers the behavior of WSB