Twitter Stock Promoter Alex DeLarge Charged With Fraud
Federal prosecutors say a Twitter penny stock pusher known as Alex DeLarge pleaded guilty in Manhattan federal court, ending a high‑profile fraud case that has drawn attention to social‑media‑driven market schemes.
Guilty plea covers one securities scheme
Steven Gallagher, 51, of Maumee, Ohio, admitted to misleading followers about his personal stake in SpectraScience Inc. (ticker SCIE). The company, described by investigators as an inactive medical‑device entity with no headquarters, was traded over‑the‑counter.
According to the filing, Gallagher bought millions of shares in December 2020, then posted a series of promotional messages through his private account @AlexDelarge6553. While he claimed to be “averaging up,” he was simultaneously off‑loading the same equity, netting about $22,000 that the government will seize.
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Investigators noted that Gallagher coordinated the effort with a small group via direct messages, even though one associate reportedly called SCIE “just a shell with no guts.” The Securities and Exchange Commission halted trading in the security on Feb. 11, 2021, citing concerns about coordinated price manipulation on social platforms.
Legal repercussions and pending civil action
Gallagher faces a sentencing date of June 27. While the maximum penalty could reach 20 years, typical sentencing guidelines suggest a shorter term. His attorney, Eric Rosen, told the court that his client “accepted complete and total responsibility” and expressed remorse to followers who bought the equity based on the tweets.
In the broader context, the case illustrates how regulators have intensified scrutiny of online promotion after the 2021 WallStreetBets frenzy, which saw a dramatic surge in the price of a video‑game retailer. That episode prompted agencies to examine other low‑priced equities that can be moved with relatively little capital.
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Although Gallagher’s guilty plea addresses only the SCIE scheme, the underlying pattern of using social media to influence prices remains a focus for both the Department of Justice and the SEC. The outcome of his sentencing and the civil suit may shape how aggressively authorities pursue similar conduct.
Legal experts note that the limited scope of the plea could signal a strategic decision to avoid a protracted trial, while still sending a warning to other online promoters. The case also raises questions about the effectiveness of current disclosure rules for influencers who discuss securities.
