A federal grand jury in California has charged short seller Andrew Left with multiple counts of securities fraud for a $16 million stock market manipulation scheme. Left, a former securities analyst, trader, and television commentator, faces charges including engaging in a securities fraud scheme, securities fraud, and making false statements to federal investigators.
Left operated under the name Citron Research, a platform known for publishing investment recommendations on companies such as Tesla, GameStop, Grand Canyon Education, and Peloton. As a short seller, Left profited by betting on stocks to decline in value.
If convicted, Left could face up to 25 years in prison for the securities fraud scheme count, 20 years for each securities fraud count, and five years for making false statements. The indictment alleges that Left manipulated stock prices by publishing sensationalized commentary and exaggerated recommendations to influence retail investors.
According to the Securities and Exchange Commission (SEC), Left and Citron are also facing charges in a $20 million fraud scheme involving deceptive tactics to mislead investors. The SEC's complaint accuses Left of exploiting his readers' trust to profit from market movements following his reports.
The complaint seeks disgorgement, prejudgment interest, civil monetary penalties, and conduct-based injunctions against Left and Citron. Left, who has relocated to Boca Raton, Florida, from Beverly Hills, California, has not yet commented on the charges.
