The US Securities and Exchange Commission (SEC) filed a lawsuit against famous short investor Andrew Left and his company Citron Research for stock manipulation.
The SEC alleges that Andrew Left and Citron Research committed fraud and made illegal profits.
The SEC charged famed short trader Andrew Left with fraud, arguing that he and his company, Citron Research, routinely made exaggerated or misleading statements about relevant stocks.
Citron Research announced in a recent X post that they were short on Gamestop (GME) stock.
SEC made the following statements in its statement:
“The Securities and Exchange Commission today filed suit against short seller Andrew Left and his company, Citron Capital LLC, for allegedly engaging in a $20 million, multi-year scheme to defraud followers by publishing false and misleading statements regarding their purported stock trading recommendations.
The complaint alleges that Andrew Left and Citron Capital made numerous false and misleading statements in connection with the program.
Andrew Left took advantage of investors. “He gained their trust and encouraged them to trade under false pretenses so that he could quickly change direction from their recommended price movements and profit from their short trades.”
In its statement, the SEC warned investors to be skeptical and not to make investment decisions based solely on information from social media or other unverified platforms.