A federal grand jury in the Central District of California has indicted a prominent activist short seller on multiple counts of securities fraud, accusing him of orchestrating a market manipulation scheme that generated at least $16 million in profits.
Andrew Left, 54, formerly of Beverly Hills and now residing in Boca Raton, Florida, was charged for his activities as a securities analyst and trader. Left frequently appeared on cable news channels such as CNBC, Fox Business, and Bloomberg Television. He conducted business under the name "Citron Research" (Citron), an online platform he created to publish investment recommendations. Citron's online presence included a website and a social media account on X, formerly known as Twitter.
According to the indictment, Left commented on publicly traded companies by asserting that their stock was incorrectly valued. His recommendations often implied or explicitly stated Citron's trading position to create the false impression that his economic incentives were aligned with his public recommendations. These recommendations also included "target prices," which Left claimed were his valuations of the company's stock. The commentary sometimes represented Left's own work; other times, it disseminated third-party content as his own. The commentary frequently featured sensationalized headlines and exaggerated language to elicit strong reactions from the stock market.
The indictment alleges that Left exploited his ability to influence stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market for quick profits. Before publishing Citron's commentary, Left allegedly established long or short positions in the companies he commented on and prepared to close those positions post-publication to profit from short-term price movements caused by his commentary. He purportedly used inexpensive, short-dated options contracts set to expire within days of publication and submitted limit orders before releasing his commentary to close positions at predetermined prices different from those recommended publicly.
Left is further accused of falsely presenting himself as independent and free from financial conflicts while concealing Citron's financial relationships with hedge funds through fabricated invoices, third-party payments, and misleading public statements about these relationships. Additionally, he allegedly lied to law enforcement about never exchanging compensation or coordinating trades with hedge funds ahead of issuing Citron’s commentary.
Through research reports published via Citron, Left gained significant influence on social media platforms and regular appearances on podcasts and cable news programs. He allegedly misrepresented his trading positions during these media appearances. For instance, after labeling one company a "fraud" on CNBC’s “Fast Money,” he reportedly claimed only minimal coverage of his position when he had already closed out more than sixty percent earlier that day.
Left faces charges including 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 could face up to 25 years in prison for the securities fraud scheme count, 20 years for each securities fraud count, and five years for making false statements.
Principal Deputy Assistant Attorney General Nicole M. Argentieri; U.S. Attorney Martin Estrada for the Central District of California; Executive Assistant Director Michael A. Nordwall of the FBI’s Criminal Division; Assistant Director Akil Davis of the FBI Los Angeles Field Office; and Inspector Eric Shen from USPIS Criminal Investigations Group announced these charges.
The case is being investigated by the FBI Los Angeles Field Office and USPIS. Trial Attorneys Lauren Archer and Matthew Reilly from the Criminal Division’s Fraud Section alongside Assistant U.S. Attorneys Brett Sagel and Alexander Schwab are prosecuting this case.
Victims can receive updates through the Victim Notification System (VNS) by contacting its Victim Assistance Unit via phone at 1-888-549-3945 or email at victimassistance.fraud@usdoj.gov.
An indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
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