Assemblyman Zebrowski Calls for Attorney General Investigation into Robinhood Financial, LLC

New York State Assemblyman Kenneth Zebrowski (D-Rockland) today called for an investigation by the NYS Attorney General into the actions taken by Robinhood Financial, LLC. In a letter to the AG, Zebrowski accuses Robinhood of affirmatively manipulating the stock prices to the benefit of institutional investors and detriment of retail investors. 

Zebrowski asserted that Robinhood restricted transactions to only position closing (selling) and "prevented retail investors (individuals) from purchasing additional shares. This caused panic among retail investors that led to a temporary sell-off. The sell-off drove the market price on these stocks to decline precipitously. These actions appear to have been a coordinated effort to cause fear in retail investors and force them to sell in order to re-calibrate the price to the benefit of institutional investors." Zebrowski continued: "This apparent manipulation of the market by Robinhood Financial, LLC is deeply concerning as they have taken a direct action to devalue these stocks to the detriment of retail investors and to the benefit of institutional financial stakeholders. The current state of financial markets and securities is already stacked against retail investors. It is extremely troubling for a brokerage firm to affirmatively manipulate a security in order to benefit some investors and harm others."

In concluding he asked that an investigation be opened: "I am asking that your office open an investigation into the actions of Robinhood Financial, LLC to determine if any law or regulation was violated. Furthermore, Robinhood Financial LLC's financial relationships with institutional investors should be investigated to determine if these relationships influenced their unilateral and discriminatory decision. The protection of all New York investors must be paramount and I believe these actions may cause significant harm to our residents.”