Citron Founder Andrew Left Accused of Securities Fraud in Multi-Million Dollar Scheme

July 29, 2024 05:02 PM AEST | By Team Kalkine Media

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Citron Founder Andrew Left Accused of Securities Fraud in Multi-Million Dollar Scheme — Image source: shutterstock

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Andrew Left, the controversial figure behind Citron Research, is facing serious legal troubles as he stands accused of secucrrities fraud. The United States Securities and Exchange Commission (SEC) has alleged that Left orchestrated a scheme to profit $16 million through deceptive stock recommendations. According to a statement released on July 26, Left leveraged his influential position on social media and television to promote stocks while secretly holding opposing positions, thereby misleading retail investors.

SEC Alleges Manipulation and Illegal Trades

The SEC's allegations point to a period of fraudulent activity spanning from March 2018 to December 2023. During this time, Left and Citron Research are accused of making illegal trades and attempting to manipulate the market. The case, filed in the US District Court Central District of California, details 26 trades across 23 companies, including major names like Nvidia, American Airlines, Alibaba, Meta (formerly Facebook), and X (formerly Twitter).

Criminal Charges and Potential Prison Time

In addition to the SEC's civil case, the US Department of Justice has brought forward criminal charges against Left. These charges accuse him of securities fraud and dishonesty to federal law enforcement regarding compensation received from hedge funds. If convicted on all 18 counts of fraud-related charges, Left faces the possibility of spending up to 25 years in prison. His indictment comes shortly after his vocal criticism of the crypto industry, which he labeled as "complete fraud" in July 2022.

Citron’s Controversial Call on Coinbase Stock

In a notable recent move, Citron Research, under Left’s guidance, urged investors to short Coinbase stock in February. This recommendation followed a temporary outage of the crypto exchange on February 28, further highlighting the contentious nature of Left’s trading strategies and public statements.

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