• Latest
  • Trending
FLASHBACK: Robinhood Was Fined $65 Million For Misleading Its Users In December

FLASHBACK: Robinhood Was Fined $65 Million For Misleading Its Users In December

01/30
Video: Canadian Police Stand Down as Antifa, Militant LGBT’ers Anti-Grooming Demonstrators

Video: Canadian Police Stand Down as Antifa, Militant LGBT’ers Anti-Grooming Demonstrators

09/22
U.S. Senator Bob Menendez Indicted

U.S. Senator Bob Menendez Indicted

09/22
Ardent Anti-Communist Upends Miami-Dade Mayoral Race

Ardent Anti-Communist Upends Miami-Dade Mayoral Race

09/22
DeSantis DeLoser

DeLoser: Florida Governor Continues Free Fall

09/22
Zelensky Performs His Routine For An Embarrassingly Small Crowd At The United Nations As Folks Reportedly Walk Out

Zelensky Performs His Routine For An Embarrassingly Small Crowd At The United Nations As Folks Reportedly Walk Out

09/21
Controlled-Opposition Project Veritas Suspends Operations After Covering Up And Lying About National File’s Ashley Biden Diary Scoop

Controlled-Opposition Project Veritas Suspends Operations After Covering Up And Lying About National File’s Ashley Biden Diary Scoop

09/21
Trump 2024

Trump Demands Biden Witch Hunts be Defunded

09/21
Matt Gaetz Deep state receipts

Impeach: Gaetz Reveals Biden Pay for Play Deal

09/21
Ukraine’s Pregnant Soldier Uniforms Highlight The Absurd Horror of The Satanic War In Ukraine

Ukraine’s Pregnant Soldier Uniforms Highlight The Absurd Horror of The Satanic War In Ukraine

09/20
Congressman Paul Gosar Shares National File’s Report on Ukraine Theft and Money Laundering Allegations Ahead of Zelensky’s Washington Begging Trip

Congressman Paul Gosar Shares National File’s Report on Ukraine Theft and Money Laundering Allegations Ahead of Zelensky’s Washington Begging Trip

09/20
Roger Stone SLAMS J6 Committee Over ‘Categorically False’, ‘Fabricated’ Evidence

Stones Rules: Roger Stone Lays into DeSantis Wardrobe

09/20
Report Clears Former Zelensky Banking Chief Kyrylo Shevchenko of Lawbreaking As Zelensky Tries To Persecute Him

After NATIONAL FILE Investigation, Reuters Publishes Report on Zelensky Corruption Allegations

09/20
Saturday, September 23, 2023
Subscribe
SUPPORT
National File
  • Home
  • Culture
    • Christianity
    • Video Games
    • Marxism
    • Snowflakes
    • Free Speech
  • News
    • Breaking News
    • International News
    • Fake News
    • Exclusive
  • Politics
    • Gun Rights
    • The Swamp
    • Deep State
    • Supreme Court
    • 2020
    • 2022
    • 2024
  • Big Tech
    • Technology
    • Alt-Tech
  • Sports
  • Education
  • Rona’
SUBSCRIBE
  • Home
  • Culture
    • Christianity
    • Video Games
    • Marxism
    • Snowflakes
    • Free Speech
  • News
    • Breaking News
    • International News
    • Fake News
    • Exclusive
  • Politics
    • Gun Rights
    • The Swamp
    • Deep State
    • Supreme Court
    • 2020
    • 2022
    • 2024
  • Big Tech
    • Technology
    • Alt-Tech
  • Sports
  • Education
  • Rona’
No Result
View All Result
National File
SUBSCRIBE
Home News

FLASHBACK: Robinhood Was Fined $65 Million For Misleading Its Users In December

Robinhood was fined $65 million last month for misleading its users about how the company makes money.

by Archive
January 30, 2021
in News
FLASHBACK: Robinhood Was Fined $65 Million For Misleading Its Users In December
Share on FacebookShare on Twitter

Last Updated on January 30, 2021

Only one month prior to the meteoric rise of GameStop, AMC, and other “meme stocks”, the trading platform Robinhood received a $65 million fine from the SEC after the government agency determined that the trading platform mislead its users from 2015-2018 regarding how the platform makes money.

Per the SEC on December 17, 2020, “between 2015 and late 2018, Robinhood made misleading statements and omissions in customer communications, including in FAQ pages on its website, about its largest revenue source when describing how it made money – namely, payments from trading firms in exchange for Robinhood sending its customer orders to those firms for execution, also known as ‘payment for order flow.'”

RelatedPosts

Video: Canadian Police Stand Down as Antifa, Militant LGBT’ers Anti-Grooming Demonstrators

U.S. Senator Bob Menendez Indicted

Ardent Anti-Communist Upends Miami-Dade Mayoral Race

In short, this means Robinhood did not give its users the best price for the stock purchases they made, and did not disclose this to the users.

READ MORE: Gosar Calls For Dept of Justice Investigation Into Robinhood and Citadel Hedge Fund

“As the SEC’s order finds, one of Robinhood’s selling points to customers was that trading was ‘commission free,’ but due in large part to its unusually high payment for order flow rates, Robinhood customers’ orders were executed at prices that were inferior to other brokers’ prices,” the SEC explained. “Despite this, according to the SEC’s order, Robinhood falsely claimed in a website FAQ between October 2018 and June 2019 that its execution quality matched or beat that of its competitors.”

Shockingly, the SEC believes that Robinhood “provided inferior trade prices that in aggregate deprived customers of $34.1 million”

CBS News notes that Robinhood has used a series of “game” tactics to attempt to persuade young retail investors to use its platform, essentially treating the stock market like a video game.

One example from the suit: To further coax customers on its platform into trading, Robinhood rewards users “with colorful confetti raining down their screens after executing trades,” according to court documents. These and other tactics are Robinhood’s way of turning serious investing into a “game,” Massachusetts Secretary of the Commonwealth William Galvin said in a statement. The alleged tactic is “not only unethical, but also falls far short of the standards we require in Massachusetts,” he said.

Robinhood said it disagrees with what Massachusetts alleged and intends to fight state officials in court.

READ MORE: Elon Musk, Ted Cruz, Donald Trump Jr, Barstool Sports, More Slam Robinhood For Banning ‘Meme Stock’ Trades

The SEC also received more than 400 complaints against Robinhood in March of 2020, when the stock trading platform inexplicably had an outage during one of the highest performance days in history. Forbes reported:

The popular stock brokerage platform experienced an outage of its trading service on March 2 that lasted for 17 hours. Customers were unable to access their accounts and execute trades while stocks were surging higher after a period of downturn due to the coronavirus. They were also unable to reach Robinhood’s customer service for help. Though service eventually resumed, Robinhood had two additional shorter outages in March.

According to statements made by the company at that time, the March outages were the result of “stress on the app’s infrastructure,” a high volume in trading due to market volatility and a record number of sign-ups. There have been problems and outages with the service every month since March, according to Down Detector.

A class action lawsuit has been filed against Robinhood after the platform blocked users from buying stock in GameStop, AMC, and other “meme stock” companies, in what some say amounts to a decision to protect hedge fund investors at the expense of retail investors.

Tags: GameStopMeme StockRobinhoodSEC

Archive

NationalFile.com

Related Posts

Video: Canadian Police Stand Down as Antifa, Militant LGBT’ers Anti-Grooming Demonstrators
Culture

Video: Canadian Police Stand Down as Antifa, Militant LGBT’ers Anti-Grooming Demonstrators

September 22, 2023
U.S. Senator Bob Menendez Indicted
News

U.S. Senator Bob Menendez Indicted

September 22, 2023
Ardent Anti-Communist Upends Miami-Dade Mayoral Race
News

Ardent Anti-Communist Upends Miami-Dade Mayoral Race

September 22, 2023
Load More
Facebook Twitter Reddit Telegram RSS

Category

  • 2020
  • 2022
  • 2024
  • Alt-Tech
  • Big Tech
  • Borders
  • Breaking News
  • cartoons
  • China
  • Christianity
  • Civil Unrest
  • Climate Hysteria
  • commentary
  • Coronavirus
  • Culture
  • Deep State
  • Economic War
  • Economy
  • Education
  • Election Integrity
  • Elections
  • Exclusive
  • Fake News
  • Fake News Media
  • Feminism
  • Free Speech
  • Gun Rights
  • Hate Hoax
  • Human Trafficking
  • Immigration
  • Impeachment
  • International News
  • January 6th
  • LGBTQ
  • Life
  • lifestyle
  • Marxism
  • Movies
  • National Security
  • Nationalism vs. Globalism
  • News
  • op-ed
  • Opinion
  • Opioid Crisis
  • Politics
  • Radical Islam
  • Related Stories
  • Sex Crimes
  • Snowflakes
  • Soros
  • Sports
  • States
  • Supreme Court
  • Technology
  • The Hill
  • The Swamp
  • Ukraine
  • Video
  • Video Games
  • Violent Crime
  • Vote fraud
  • Voter Fraud
  • Voter Fraud Investigation
  • White House
  • Wholesome News

Recent News

  • Video: Canadian Police Stand Down as Antifa, Militant LGBT’ers Anti-Grooming Demonstrators
  • U.S. Senator Bob Menendez Indicted
  • Ardent Anti-Communist Upends Miami-Dade Mayoral Race

© 2022 NationalFile.com National File, LLC. Privacy. Corrections. About Us. All Rights Reserved.
Have any questions or suggestions? If you are having difficulty unsubscribing from our mail subscription please send an email here info@nationalfile.com Want to advertise with us? Please email: brett@nationalfile.com

No Result
View All Result
  • Home
  • Politics
  • News
  • Culture
  • Coronavirus
  • Sports
  • 2020
  • Breaking News
  • Civil Unrest
  • International News
  • The Swamp
  • Big Tech
  • Deep State
  • Voter Fraud
  • Marxism
  • Free Speech
  • DONATE
  • SUBSCRIBE

© 2022 NationalFile.com National File, LLC. Privacy. Corrections. About Us. All Rights Reserved.
Have any questions or suggestions? If you are having difficulty unsubscribing from our mail subscription please send an email here info@nationalfile.com Want to advertise with us? Please email: brett@nationalfile.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In