Citron Capital, Founder Andrew Left Face Securities Fraud Charges

The US Securities and Exchange Commission said Friday it has charged short seller Andrew Left and his firm, Citron Capital, for allegedly engaging in a $20 million fraud scheme through false and misleading stock trading recommendations.

The regulator said Left and his firm allegedly defrauded investors by misleading them through false stock recommendations, while he profited from the price movements following his reports.

The Fraud Section of the US Department of Justice and the US Attorney's Office for the Central District of California have also charged Left for similar complaints, the SEC said.

Separately, Left was charged in a 19-count indictment alleging he used his public platform to profit at least $16 million through stock manipulation from 2018 to 2023, the US Attorney's Office for the Central District of California said Friday, citing the US Department of Justice.

The civil complaint alleges that Left and Citron engaged in fraudulent activities involving 23 companies on 26 occasions and is expected to be arraigned soon in Los Angeles federal court, according to the statement.

"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," according to the statement.

Citron Capital did not immediately respond to a request for comment from MT Newswires.