2024: Former Tech Exec Admits To Fraud Involving A Scheme To Boost Getty Images Shares, Authorities Say

AP SAN FRANCISCO — Getty Images, Federal officials announced on Friday that a former technology executive had entered a guilty plea to a single count of fraud about a plan to fraudulently raise the share price of photo and video distributor Getty Images.

For a few months in 2006, Robert Scott Murray, the CEO of networking equipment manufacturer 3Com, faced charges of securities fraud related to his purported attempt to manipulate the share price of Seattle-based Getty. According to a Department of Justice statement, Murray owned about 300,000 Getty Images Holding Inc. shares in April 2023. The investor allegedly wanted to increase the price of Getty’s stock so he could sell his holdings for a higher profit.

The Securities and Exchange Commission said that Murray initially sent out several press releases urging the business to sell itself or include Murray on the board. According to federal authorities, Murray issued those announcements using Trillium Capital, a Massachusetts venture investment company he identified as his own, with Murray serving as both owner and manager.

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Former Tech Exec Admits To Fraud Involving A Scheme To Boost Getty Images Shares, Authorities Say

Then, on April 24, 2023, Trillium made public a purported offer to buy Getty Images outright for $10 per share, almost twice the closing price of the shares the day before. Even if the company’s stock price increased that day, it was still much below $10.

The following day, Getty released a news release questioning the offer and referring to it as an “unsolicited, non-binding and highly conditioned proposal” with the intention of purchasing “an unstated volume of outstanding shares.” The statement claimed that Trillium had not shown Getty’s board any proof that it was “sufficiently credible to warrant engagement.”

Former Tech Exec Admits To Fraud Involving A Scheme To Boost Getty Images Shares, Authorities Say

The SEC described the offer as “false and misleading,” pointing out that neither Murray nor Trillium attempted to raise the money required for the purchase. Murray also began selling his Getty Images stock minutes after the market opened on April 24, according to the SEC, “without even waiting for Getty to respond to his announced offer.” Murray sold all of his Getty shares “within less than one hour for approximately $1,486,467,” according to a statement from the Justice Department.

Former Tech Exec Admits To Fraud Involving A Scheme To Boost Getty Images Shares, Authorities Say

Murray was unavailable for comment. The Associated Press received a bounced email addressed to an address on the Trillium website, and repeated calls to the company’s advertised phone number were met with busy signals.

According to the Justice Department, Murray will appear in federal court in Boston later.

SOURCE – (AP)