Tesla CEO Elon Musk’s lawyer Alex Spiro alleges SEC through a letter addressed to New York Judge Alison Nathan on Monday. It states that the Securities and Exchange Commission leaked information from its investigation to the federal investigation. Spiro openly didn’t reveal the name of the staff but argued that these actions show the vindictive nature of the agency towards Tesla CEO, Elon Musk.
The ongoing battle seems to be far from over since the last time it was known that SEC pushed back. Earlier the SEC responded to allegations that the Tesla CEO is being harassed continuously because of various investigations. SEC responded by saying that the agency had “broken promises” and engaged in a “pattern of conduct” amounting to harassment after an earlier settlement agreement.
This time Musk’s lawyer is alleging that the SEC leaked information. Stating “Upon information and belief, after I filed the February 17, 2022 letter to this Court regarding the Commission’s conduct, at least one member of the SEC staff responded by leaking certain information regarding its investigation. This leak is emblematic of the vindictive, improper conduct that occasioned my letter: the SEC is retaliating against Mr. Musk and Tesla, without answering to the constraints of principle or law in so doing.”
Addressing the misconduct
In another letter, Spiro stated that certain SEC staff should “preserve their records and devices.” Then added that he had reported the matter to the SEC Office of Inspector General. According to the letter, the SEC has not issued a response to Spiro’s allegations as of writing. It is unclear when the report was sent out.
Spiro stated, “No denial has been forthcoming as of yet. So that the Court is advised of the premises and able to address the ostensible misconduct before it, we now respectfully seek on-the-record assurance that the Commission has not leaked investigative details in violation of its own rules and policies and is otherwise acting in accordance with the law,”
Earlier the SEC reached a deal as a revised settlement agreement was sent out in 2019. SEC alleged that Elon Musk is taking too long to distribute the $40 million fine. However, Steven Buchholz argued that it is a complicated process and that the task will be completed by March this year. Despite the settlements and agreements, it appears that the battle is not off. SEC is known to have conducted various investigations on this matter in the past.
