Short-seller Andrew Left says he’s not guilty of fraud
Famed short-seller Andrew Left pleaded not guilty to US charges that he committed fraud, setting the stage for a high-profile legal battle over his strategies.
Left on Monday made his first appearance in federal court in Los Angeles since being charged last week by the Justice Department. Prosecutors allege Left manipulated the market to benefit his trading and made false statements to investigators. If convicted, he could face decades behind bars.
During a hearing that lasted about 40 minutes, Magistrate Judge Rozella Oliver imposed a $4 million bond with $1 million of it collateralized. She gave him until Aug. 5 to come up with the $1 million.
Assistant US Attorney Brett Sagel argued that Left was a flight risk, pointing to more than $70 million in assets, including a property abroad. “He can walk out of this country and live a very luxurious life,” Sagel said.
Left, who wore a dark blazer and whose hands were cuffed during the court proceedings, mostly answered “yes” or “no” to the magistrate judge’s questions. He was flanked by his lawyers.
While he awaits trial, Left is also prevented from making many financial transactions of more than $100,000 without special permission and his trading activity was restricted. His trial date was set for Sept. 24. He was ordered to surrender his passport and his domestic travel was also restricted.
Over the years, Left gained prominence among the cadre of investors who specialize in betting against specific stocks. But prosecutors now say he used his influence and the platform, Citron Research, to steer trading in ways that improperly benefited his own positions.
The Justice Department said Left would create a false perception that his public comments on a stock were in line with
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