WFCN –
Fresh evidence of illicit manipulation of stocks emerges as a well-known short seller activist is charged by the Justice Department and SEC.
As per U.S. officials, well-known short seller Andrew Left and his investment company Citron Capital are facing allegations of market manipulation and investor fraud.
According to the Justice Department and Securities and Exchange Commission (SEC), Left has allegedly been issuing deceptive statements about his investments in different stocks like Nvidia and Tesla for a long time, with the intention of benefiting from changes in the market.
According to officials, Left supposedly utilized his social media channels and public appearances to advocate for his supposed investments in specific stocks, whether they were expected to rise or fall.
Nevertheless, he would promptly switch those stances, earning up to $20 million in the meantime.
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Engaging in the act of spreading deceitful or inaccurate information regarding his trading endeavors is viewed as market manipulation and deceiving investors.
The accusations against Andrew Left and Citron Capital indicate that authorities have detected a consistent behavior in which the well-known short seller has been using his public platform to manipulate stock prices in a deceptive way for his personal profit.
This situation showcases the regulators’ determination to clamp down on deceptive maneuvers in the financial markets.
The accusations highlight the crucial role of openness and the necessity for investors to meticulously analyze the data provided by powerful players in the market, particularly those with substantial holdings or the power to influence public perception of specific stocks.
According to the Justice Department, Left, aged 54, kept secret the fact that he received input from external sources, such as hedge funds, for his analysis. In exchange for payment, he would inform them of his positions before making them public, giving them the opportunity to make a profit or reduce losses.
The Department of Justice stated that in order to pretend that Citron’s recommendations and positions were genuine, the defendant Left deceived by making dishonest statements and only revealing partial truths about his financial motivations, belief in Citron’s analyses, and assessments of Targeted Securities.
Left intends to challenge the accusations.