Tesla CEO Elon Musk could be hit with civil and criminal penalties if he didn’t shore up financing before tweeting about possibly going private with his auto company, CNBC’s “Squawk Box” reports.
Former Securities and Exchange Commission Chairman Harvey Pitt told business news network on Wednesday:
“If you make a false statement in connection with the trading of securities, you run the risk of both having to pay for the damages you caused and also you run the risk of a criminal prosecution.”
Pitt added: “There’s enough here for people to ask questions. Whether or not he’s done anything illegal is far from certain.”
Tesla did not immediately respond to CNBC’s request for a comment.
On Tuesday, Musk tweeted about possible plans to take the company private.
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