Prominent Short Seller Andrew Left Charged with Fraud
- Andrew Left has been charged by the Department of Justice with multiple counts of securities fraud.
- The allegations involve a stock market manipulation scheme totaling $16 million.
- This case raises significant concerns about the integrity of the financial markets and the actions of short sellers.
Federal prosecutors have charged Andrew Left, a well-known short seller and founder of Citron Capital, with fraud, alleging he manipulated the stock market to illegally profit at least $16 million. The Securities and Exchange Commission (SEC) has also filed charges against Left and his firm, accusing them of orchestrating a multi-year scheme that defrauded investors by disseminating false and misleading stock trading recommendations valued at $20 million. According to the allegations, Left utilized his Citron Research website and social media to promote long or short positions in 23 companies, misleading followers into believing these positions aligned with his own investments. The SEC's complaint states that the prices of the targeted stocks surged by an average of over 12% following his recommendations. Subsequently, Left and Citron Capital would quickly reverse their positions to profit from the price fluctuations. Kate Zoladz, director of the SEC's Los Angeles regional office, emphasized that Left exploited the trust of his readers, inducing them to trade based on deceptive information. Left, 54, has been a prominent figure in the short-selling community for over a decade, known for his critical research on companies like GameStop, Peloton, and Tesla. The investigation into Left's activities is part of a broader scrutiny of short sellers by federal prosecutors and the SEC, who have been examining potential market manipulation practices. Left is expected to be arraigned in U.S. District Court in Los Angeles in the coming weeks.