Former technology executive Robert Scott Murray has pleaded guilty to fraud in a scheme to manipulate the share price of Getty Images, federal officials announced on Friday. Murray, who previously served as the CEO of 3Com, was charged with securities fraud for allegedly attempting to artificially inflate Getty’s stock price to profit from his own holdings.
The scheme came to light on April 24, 2023, when Trillium announced a bid to acquire Getty Images at $10 a share, nearly double the previous day’s closing price. However, Getty quickly issued a statement questioning the legitimacy of the offer, labeling it as “unsolicited” and “highly conditioned.” The Securities and Exchange Commission (SEC) deemed the bid as “false and misleading,” as Murray and Trillium had not secured the necessary funds for the acquisition.
Within minutes of the announcement, Murray began selling off his Getty shares, ultimately making approximately $1.5 million in less than an hour. Despite attempts to reach Murray for comment, he could not be reached, and calls to Trillium went unanswered.
Murray is set to appear in federal court in Boston at a later date to face the charges. The Department of Justice emphasized the seriousness of the case, highlighting the impact of fraudulent activities on the financial markets. The investigation serves as a reminder of the importance of transparency and integrity in the business world.
