Regulators once accused Elon Musk of fraud over a possible buyout that never happened. Now they are positioned to make similar allegations over one that did.

The Securities and Exchange Commission has been investigating Musk’s late disclosure of his purchases of Twitter stock before he took over the company. Excerpts of Musk’s testimony provided to the SEC, which came to light last month through a separate lawsuit, suggest Musk and his adviser brushed off compliance with a rule that required him to reveal his ownership once it passed 5% of Twitter’s shares. READ MORE