SEC charges Citron Research founder with $16 million in securities fraud

Andrew Left, founder of short-selling financial research firm Citron Research, has been charged with securities fraud for allegedly making $16 million from "bait and switch" stock recommendations that misled retail investors. The U.S. SEC said in a statement on July 26 that Left is a strong cryptocurrency skeptic who uses social media and TV shows to make recommendations on stocks in which he holds short or long positions. This creates the illusion that his public comments on these stocks are consistent with his company's trading activities, even though he would "go the other way" in many cases. The SEC added: "This fraud deceived investors and allowed Left to use his Citron Research reports and tweets as a catalyst for short-term profits." (Cointelegraph) Earlier, Andrew Left and Citron Capital were charged by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for alleged millions of dollars in fraud. It is reported that Citron Research is one of the most famous short sellers of GameStop and announced in June that it would no longer short GameStop.