Federal grand jury charges short seller Andrew Left in $16M stock manipulation scheme
abcnews.go.comA federal grand jury in California has charged activist short seller Andrew Left with multiple counts of securities fraud for a $16 million stock market manipulation scheme
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.
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.
Separately, the Securities and Exchange Commission said Left's $20 million fraud scheme used “bait and switch” tactics to mislead investors. The SEC’s complaint, filed in the United States District Court for the Central District of California, charges Left and Citron Capital with violating antifraud provisions of the federal securities laws.
The complaint seeks disgorgement, prejudgment interest, and civil monetary penalties against Left and Citron and conduct-based injunctions, an officer-and-director bar, and a penny stock bar against Left.
Representatives at Citron Resarch weren't immediately available to comment. According to the complaints Left has relocated to Boca Raton, Florida from Beverly Hills, California.
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