In the Central District of California, a federal grand jury returned an indictment charging a habitual short seller in a $16m market manipulation scheme.
Andrew Left, formerly of Beverly Hills, California, and now Boca Raton, Florida, is at the charge’s core. According to court documents, Left ran the Citron Research (Citron) business channels via a website and social media. He did so as an analyst and suggested possible options for prospective investors.
He mainly served as a keynote and star commentator on television and in the columns of CNBC, Fox Business, and Bloomberg Television.
CNBC and Bloomberg Television investment figure charged by federal jury
Left was a vocal commentator on publicly traded stocks, using his position as an expert to persuade the onlooking investors. He would, according to the court’s report, include “an explicit or implicit representation about Citron’s trading position—which created the false pretense that Left’s economic incentives aligned with his public recommendation—and a “target price,” which Left represented as his valuation of the company’s stock.”
It is alleged by the court that Left made “fast, easy money” by influencing the market. He would promote sensationalist and outlandish points of view and headlines to sway retail investors. This involved popular stocks that, in his position as a lead commentator on nationally syndicated media outlets promoted.
Left, convinced investors that he was an independent analyst with no ties to any group that might benefit the movement of high-profile stocks. It is alleged by the court, that this was in fact a falsehood.
He is alleged to have “concealed Citron’s financial relationships with a hedge fund by fabricating invoices, wiring payments through a third party, and making false and misleading statements to the public about Citron’s relationship with hedge funds.”
Left is facing one count of engaging in a securities fraud scheme, seventeen counts of securities fraud, and one count of making false statements to federal investigators. If proven guilty, he could face twenty-five years for the headline count, twenty years for each count and five years for the false statements respectively.
The U.S. Postal Inspection Service (USPIS) and the FBI are investigating the case.
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