Analyst Andrew Left indicted for alleged scheme to manipulate stock market

The U.S Attorney’s Office said in part on Monday afternoon: “A stock analyst and frequent guest on business television news channels has been charged in a 19-count indictment alleging he used his public platform to illicitly profit by manipulating stock market activity and trading contrary to the position he presented to the public, the Justice Department announced today. Andrew Left, formerly of Beverly Hills but who now resides in Boca Raton, Florida, 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.Left is expected to be arraigned in the coming weeks in United States District Court in downtown Los Angeles.”This defendant allegedly used his platform as a securities commentator to manipulate the markets and enrich himself in the process,” said United States Attorney Martin Estrada. … According to the indictment returned on Thursday, Left is a securities analyst, trader, and frequent guest commentator on business cable news channels such as CNBC, Fox Business, and Bloomberg Television. He also conducted business under the name “Citron Research,” an online moniker he created as a vehicle for publishing investment recommendations. Citron’s online presence included a website and a social media account on X, formerly known as Twitter…Knowing that Citron’s reputation with investors had the power to move markets, Left allegedly selected a publicly traded company about which he intended to publish commentary with the intention of manipulating its share price. Left prepared commentary about the company for dissemination through Citron. Sometimes, the commentary represented Left’s own work. …The commentary routinely included sensationalized headlines and inflammatory language to maximize the immediate impact their publication would have on the stock market…For example, in November 2018, Left allegedly wrote a portfolio manager about Nvidia (NVDA) a publicly traded technology company based in Santa Clara, California. In the message, Left wrote, “Do you want to make some fast money Put together a thesis why nvda is oversold . . . We can destroy it . . . Just read the analyst notes from this past quarter and assemble the best of the ideas.” Later that morning, Left took financial positions in Nvidia, including short-dated call options that expired three days later. Short-dated options can offer quick profits if a stock suddenly moves in the narrow timeframe before expiration….According to the indictment, Left also furthered his scheme by misrepresented his trading positions during public appearances on news programs. After denouncing one company as a “fraud” on CNBC’s “Fast Money,” for example, Left allegedly falsely claimed to have covered only a “small size” of his position in the company’s stock when, earlier that same day, he had already closed out the majority of his position following the publication of commentary through Citron…If convicted, Left would face a statutory maximum sentence of 25 years in federal prison for the securities fraud scheme count, up to 20 years in federal prison for each count of securities fraud, and up to five years in federal prison for the false statements count. The FBI and the United States Postal Inspection Service are investigating this matter.”