Cape Cod Man Pleads Guilty to Securities Fraud Scheme Involving Getty Images

MASHPEE, MA — As expected, a Cape Cod man has pleaded guilty to one charge related to a scheme that artificially inflated the trading price of Getty Images Holdings and attempted to cover it up.

Robert Scott Murray, 60, pleaded guilty to one count of securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for October 3, 2024. Murray previously served as the CEO of Stream Global Services and 3Com.

Getty Images Holdings, Inc. (Getty) is a visual media company and supplier of images, videos and music, headquartered in Seattle. Getty’s stock is publicly traded on the New York Stock Exchange under the ticker symbol GETY.

Murray was a long-time investor who previously served as the Chief Executive Officer of multiple public companies, including Stream Global Services and 3Com, Department of Justice officials said.

It is alleged that in April 2023 Murray owned approximately 300,000 GETY shares. Murray allegedly issued press releases and sent emails in the name of Trillium Capital LLC – a “venture investment company” located in Massachusetts of which Murray was the sole owner and manager – urging that Getty add Murray to its board of directors. Murray’s efforts to join Getty’s board of directors failed, officials said.

He then allegedly proceeded to make false and misleading statements, including through press releases and in media interviews, with the purpose of artificially inflating the GETY trading price so that Murray could sell the GETY shares he owned at the artificially inflated price.

On Friday, April 21, 2023, GETY shares closed at a trading price of $5.06 per share. On Monday, April 24, 2023, prior to the market opening, Murray allegedly caused the publication of a press release in which Trillium Capital made a proposal to acquire Getty for “$10 per share.”

When the market opened, GETY shares traded at $7.88 per share, nearly 56 percent above the prior closing price. According to court documents, Murray then sold all the GETY shares he owned within less than one hour for approximately $1,486,467.

It is further alleged that Murray’s friend, who Murray had previously instructed to buy GETY shares, also sold shares that same morning at Murray’s direction for approximately $558,328.

On or about Dec. 6, 2023, at the direction of law enforcement, Murray’s friend texted Murray, “I just got a subpoena from the SEC” and “they’re asking me for any communications with you” related to “Getty stock.” Murray allegedly responded, “just say there were none” and “you should delete all my texts.”

Murray further stated that text messages are “like virginity, once you delete your virginity you ain’t getting it back.”

On or about that same day, it is alleged that Murray emailed his friend a proposed response to the subpoena, which falsely stated that the friend bought Getty stock “solely based on my read of the various press releases from Trillium Capital and my knowledge that Scott Murray is a very experienced investor” and “not from any communications from Scott Murray or Trillium Capital.” It is further alleged that when approached by law enforcement in February 2024, Murray falsely denied telling his friend to buy Getty shares.

The Securities and Exchange Commission filed a civil complaint against Murray alleging violations of the securities laws.