A federal jury in California has convicted short seller Andrew Left of securities fraud. Left, a securities analyst, trader, and television commentator, was found guilty on one count of participating in a securities fraud scheme and 12 counts of securities fraud. He is scheduled to be sentenced on 31 August and faces a maximum penalty of 25 years in prison.
The US Department of Justice announced the verdict on Tuesday. Left was charged in July 2024 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 profited by betting that stocks would fall.
According to the indictment, Left operated under the name Citron Research, publishing investment recommendations on a website. He targeted stocks popular with retail investors, posting sensationalised headlines and exaggerated language on social media to manipulate market prices. Before publication, Left would take long or short positions in the companies he commented on, then quickly close those positions to profit from the short-term price movements caused by his commentary.
Assistant Attorney General A Tysen Duva stated: 'Andrew Left used his expertise to profit at the expense of retail investors, ordinary people who owned the stocks he targeted. He callously boasted that it was like “taking candy from a baby”.' Duva added that such schemes strike at the heart of free, fair, and open markets.
Left expressed opposition to the conviction in a post on X under the Citron Research handle, saying: 'We disagree with the jury and this does not stop here. We will keep fighting for free, honest speech and opportunity, the backbone of this country. This is not over.'
