GameStop CEO Ryan Cohen agreed on Wednesday to pay a fine of nearly $1 million to settle Federal Trade Commission (FTC) allegations that he illegally purchased Wells Fargo securities.

The agency said Cohen violated the Hart-Scott-Rodino Act, which requires investors to avoid purchasing large amounts of securities in a press releaseCohen allegedly failed to disclose that he purchased more than 562,000 voting securities from the bank.

The disclosure would have given regulators the opportunity to review the deal for antitrust violations before it went through, the FTC said. Even though Cohen’s purchase of Wells Fargo securities was below the standard 10% threshold, it would have violated antitrust laws.

Cohen allegedly intended to influence Well Fargo’s business, the regulator said, and advocated in emails for a seat on the company’s board of directors. At the same time, Cohen had “periodic communications” with the bank’s leadership after he bought the securities, suggesting steps that could be taken to improve the bank’s business, the FTC said.

Wells Fargo did not immediately respond to a request for comment from DecipherAccording to the FTC press release, Cohen will pay $985,320.

Cohen joined GameStop’s board in early 2021 and was named chairman of the board six months after assuming that role. About a year ago, he was named CEO, taking over the reins of the video game retailer from Matt Furlong.

Meanwhile, GameStop’s stock price fell 3% to $19.55 on Wednesday, down more than 13% in the past month. Amid the online comeback of meme stock influencer Keith Gill, also known as Roaring Kitty or DeepFuckingValue, GameStop’s stock price rose to $48.75 in May.

Cohen, the founder and former CEO of pet supplies company Chewy, said GameStop’s leadership “wasn’t here to make promises or blow things up” at a shareholders meeting in June. While the meeting was widely hyped for the return of Roaring Kitty, it ultimately turned out to be routine.

Leading up to the call, GameStop fans speculated that Gill could be appointed to the company’s board of directors. Yet the legendary meme stock influencer wasn’t even mentioned during the call.

Gill became the face of a retail-led movement in 2021 aimed at outsmarting Wall Street short sellers. A massive surge in the company’s stock price created a cult-like following around the company, cementing GameStop in internet culture as a wildly popular meme stock.

GameStop shares have fallen from their May peak as enthusiasm has cooled. The last time Gill showed his GameStop holdings on Reddit was on June 13, more than three months ago.

A Twitter post from Gill (also known as X) in June suggested the influencer was interested in Chewy, and a subsequent SEC filing revealed he 9 million shares purchased in the company.

But that sentiment seemed to change when he posted a meme earlier this month in which a character from the movie “Toy Story 2” dropped a toy with a dog’s face on top of it. It was the same cartoonish image of a dog that Gill originally tweeted in June.

The meme stock influencer’s online re-enactments sparked public interest earlier this year. A livestream that walked the line between performance art and financial advice drew more than 700,000 viewers, eager to hear Gill’s thoughts on GameStop.

During the livestream, Gill mentioned Cohen’s name, describing him as someone who could help the video game retailer modernize its business model and move beyond just selling gaming hardware.

“He seems to be taking the right approach given this unique situation,” Gill said. “Let’s see where it goes from here.”

Edited by Andrew Hayward