EC Charges Citron Research Founder With Allegedly Profiting $16 Million Through Securities Fraud

Andrew Left, the founder of Citron Research, a short-selling financial research firm, has been charged with securities fraud for allegedly profiting $16 million from “bait and switch” stock recommendations that misled retail investors. In a July 26 statement, the SEC said Left was a strong cryptocurrency skeptic who used social media and TV shows to make recommendations on stocks in which he had short or long positions. This created the false impression that his public comments on these stocks were consistent with his company's trading activity, even though in many cases he would “do the opposite”. The SEC added: “This fraudulent behavior deceived investors and allowed Left to use his Citron Research reports and tweets as a catalyst for short-term profits.” (Cointelegraph) In previous news, Andrew Left and Citron Capital have been charged by the SEC and the Department of Justice (DOJ) for an alleged multi-million dollar fraud. Citron Research, one of GameStop's most prominent short sellers, reportedly announced this past June that it would no longer short GameStop.