Andrew Left, the founder of Citron Research and a frequent guest on business television news channels, was found guilty by a jury in Los Angeles today for scheming to manipulate the stock market. Left illicitly profited by using his public platform to influence stock activity and then trading opposite to the positions he presented to the public.
Left, 55, formerly of Beverly Hills and now residing in Boca Raton, Florida, was convicted of one count of securities fraud scheme and 12 counts of securities fraud. First Assistant United States Attorney Bill Essayli said, "Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets."
According to evidence from a 15-day trial, Left operated Citron Research as an online platform to publish investment recommendations. He commented on publicly traded companies, asserting their stock was incorrectly valued, often including representations about Citron’s trading position and a "target price."
Left leveraged his social media following and public platform to earn at least $21 million in quick profits through fraudulent stock market manipulation between March 2018 and October 2023. He would establish long or short positions in a company's stock, frequently using inexpensive, short-dated options, before disseminating sensationalized commentary designed to maximize immediate impact on the share price. This allowed Left to exploit his advanced knowledge and close positions for profit, often at prices vastly different from those touted publicly.
The scheme also involved concealing Citron’s financial relationships with hedge funds. For instance, in November 2018, Left messaged a portfolio manager about Nvidia Corp., suggesting they "destroy it" with a thesis. He then took financial positions in Nvidia, promoted it on Citron’s X account, and less than two hours later, sold all his pre-tweet positions for a profit of at least $960,000, despite publicly stating he expected the stock to rise.
Patrick Grandy, Assistant Director in Charge of the FBI Los Angeles Field Office, commented, "While this conviction cannot make up for the significant and emotional harm he inflicted upon his unwitting investors, it does send a message to those who may be looking to profit from similar schemes." Left was acquitted of four counts of securities fraud. United States District Judge Virginia A. Phillips has scheduled his sentencing for August 31, where he faces a statutory maximum sentence of 25 years for the securities fraud scheme count and up to 20 years for each securities fraud count. The FBI and the United States Postal Inspection Service investigated the matter.