WFCN –
After being charged with 19 counts of stock manipulation due to illegal trades, a short seller has been granted a $1 million bond.
In Los Angeles on Monday, the well-known activist investor Andrew Left turned himself in to authorities to confront federal charges linked to securities fraud.
The accusations claim that Left utilized his public stage, which included sharing posts on social networks like X (previously known as Twitter) and making appearances on TV channels like CNBC, to spread untrue and deceptive information about his investments in different stocks.
According to prosecutors, Left allegedly schemed to manipulate stock market movements in order to make illicit profits of at least $16 million, going against the public stances he had previously declared.
The Magistrate Judge Rozella Oliver set a bond of $4 million, with $1 million of it required as collateral.
As per the bail conditions, the short seller is now required to forfeit just $1 million of the $16 million he unlawfully earned.
On Friday, the Securities and Exchange Commission (SEC) also filed a lawsuit against Left.
The authority accused Left of utilizing his Citron Research website and various social media channels to suggest either buying or selling positions in 23 companies, and subsequently taking actions contrary to those recommendations when the stock prices changed.
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Left made appearances on various media channels such as CNBC, Fox Business, and Bloomberg TV to share his opinions on stocks, platforms that have been closely examined by individual investors.
In a statement, Kate Zoladz, director of the SEC’s Los Angeles regional office, accused Andrew Left of exploiting his audience.
“He gained their confidence and persuaded them to engage in deceitful transactions, allowing him to promptly change course and benefit from the market fluctuations that ensued after his announcements.”
According to the SEC, Left and his company reportedly obtained $20 million in profits deemed as dishonest from their actions.
According to Bloomberg, the judge granted Left until August 5th to gather $1 million for the secured bond.
The date for his trial has been scheduled for September 24th. He is prohibited from carrying out any transactions exceeding $100,000 and has handed over his passport until that time.