Andrew Left, founder and CEO of Citron Research
Adam Jeffery | CNBC
Federal prosecutors have criminally charged the well-known short seller and analyst Andrew Left with securities fraud related to allegedly using his public platform to illegally profit to the tune of at least $16 million from manipulating stock market activity contrary to positions he presented to the public from 2018 through 2023.
Left and his firm Citron Capital also were separately charged in a civil fraud action by the Securities and Exchange Commission, which accused them of “engaging in a $20 million multi-year scheme to defraud followers by publishing false and misleading statements regarding his supposed stock trading recommendations.”
Left, a 54-year-old resident of Boca Raton, Florida, is expected to be arraigned in the next several weeks in Los Angeles federal court, where he’s charged in a 19-count criminal indictment, the U.S. Attorney’s Office in L.A. said in a statement.
He declined to comment on the indictment and SEC complaint.
The indictment notes that Left is a frequent guest commentator on CNBC and other business cable news channels.
“Mr. Left’s presence on financial television networks and his significant online following provided him with a credible platform to allegedly disguise his intentions and manipulate the investing public for personal gain,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office, in a statement.
Prosecutors said that Left used Citron’s online platform to comment on publicly traded companies and claim that their stock was incorrectly valued by the market.
Left, who previously lived in Beverly Hills, California, is charged in the indictment 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.
If convicted, he would face a maximum possible sentence of 25 years in prison for the securities fraud scheme alone.
– Additional reporting by CNBC’s Rohan Goswami
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