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.
The Department of Justice said in a statement on Friday that Left, who was a securities analyst, trader, and guest commentator on television channels including CNBC and Fox Business, is charged with one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. As a short seller, Left would make money betting stocks would fall.
The Justice Department said that Left conducted business under the name Citron Research, which had a website that published investment recommendations. He published research on companies ranging from Tesla and GameStop to Grand Canyon Education and Peloton .
If convicted, Left faces a maximum penalty of 25 years in prison on the securities fraud scheme count, 20 years in prison on each securities fraud count, and five years in prison on the false statements count.
According to the indictment, Left would comment on publicly traded companies and make recommendations on the shares. The commentary often included sensationalized headlines ("Investors Peddling Themselves into Frenzy") and exaggerated language to maximize the reaction it would get from the stock market. As alleged, Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money.
