Former CEO Convicted in $4 Billion Fake Bid Fraud Against Getty

Scott Murray, the former CEO of publicly traded companies including Stream Global Services and 3Com, has been sentenced to 10 months in prison for securities fraud related to a fake acquisition bid for Getty Images Holdings. U.S. District Judge Denise Casper announced the sentencing in Boston on Tuesday, following Murray's guilty plea in June.

Murray, also the founder of Trillium Capital, initiated a false $4 billion offer to acquire the visual media company Getty Images, a competitor to Reuters and Associated Press in the editorial photography and video space, after purchasing approximately 300,000 shares of the Seattle-based company.

The fraudulent scheme emerged after Getty Images rejected previous proposals from Murray regarding selling his company or appointing him to the board. To offset losses from his investment, Murray issued a press release through Trillium Capital, falsely claiming he had made a $4 billion offer for Getty Images, when at that time Trillium had only $20.

The false announcement on April 24, 2023, resulted in a spike in Getty's stock price. Murray took advantage of this artificial surge by selling approximately 209,250 of his remaining shares within two hours, earning around $1.49 million.

The fake offer attracted significant media attention, and in an interview, Murray refused to disclose the sources of his funding while claiming that the offer was legitimate based on his "deep connections" in the private equity sector.

Murray's legal representative acknowledged that his client panicked and worsened his initial poor decisions. In addition to his prison sentence, Murray was fined $227,543. This case highlights the legal consequences of fraudulent market manipulation and misinformation in the financial world.