Just In – Famed short-seller Andrew Left convicted of securities fraud in landmark case🤯
Short-seller Andrew Left was convicted Monday of securities fraud for a tweet-and-trade operation — a verdict that could have consequences on Wall Street.
After two full days of deliberations, the jury found him guilty of the top count of engaging in a securities fraud scheme and then 12 of 16 other counts related to specific trades, acquitting him of four.
Left’s lawyer put his hand on his client’s back as he listened to the cavalcade of “guilty” in the Los Angeles courtroom. Left took off his glasses and stared intently at the jury as the judge polled each member on whether they agreed with the verdict.
Left, a 55-year-old investor and financial commentator — made the unusual move of testifying in his own defense — faces a maximum of 25 years in federal prison when he’s sentenced Aug. 31, though his sentence is likely to be lower.
The federal case has been closely watched because it focused on the question of what short-sellers, who bet that a stock price will fall, can say and do within the limits of the law.
Left, the founder of Citron Research, made his name as an activist short-seller who published scathing reports about public companies, exposing mismanagement or even fraud. He also infamously shorted GameStop, unleashing rage from its fans.
Prosecutors accused him of misleading retail investors and hurting companies by using social media to publicize Citron reports on companies, leading his followers to make trades — then quietly closing his own position at a different price than the one he recommended.
