BroadChain Financial learned that on July 29th, according to Cointelegraph, Andrew Left, the founder of the short-selling financial research firm Citron Research, has been accused of securities fraud.
It is alleged that Andrew Left made a profit of $16 million by misleading retail investors with “bait and switch” stock recommendations.
In a statement on July 26th, the U.S. SEC stated that Andrew Left is a strong crypto skeptic who offers recommendations on stocks he holds short or long positions in through social media and TV shows.
This created an illusion that his public comments on these stocks were consistent with his company’s trading activities, despite often engaging in “contrary trading.”
The U.S. SEC added, “This fraudulent conduct deceived investors and allowed Left to use his Citron Research reports and tweets as a catalyst for short-term profits.”
Previously, Andrew Left and Citron Capital were charged by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for allegedly committing fraud amounting to millions of dollars.
Citron Research is known as one of the most prominent short-sellers of GameStop, but announced in June 2024 that they will no longer short GameStop.