Andrew Left, the founder of Citron Research, was found guilty Monday of one count of securities fraud scheme and 12 counts of securities fraud for using his public platform to manipulate stock prices and trade opposite to the positions he presented to investors.
Left, 55, earned at least $21 million from the scheme, which ran from March 2018 to October 2023, according to the Justice Department. He faces a statutory maximum sentence of 25 years in federal prison on the securities fraud scheme count, and up to 20 years for each additional count of securities fraud. Sentencing is scheduled for Aug. 31.
According to prosecutors, Left weaponized his public profile — built through cable news spots on channels like CNBC, Fox Business, and Bloomberg Television, as well as a large social media following — to push stock prices in his favor, exiting his trades almost immediately while misleading the public about whether he still held them. He often built his positions using short-dated options contracts that expired the same day he published commentary through Citron.
In one example cited at trial, Left messaged a portfolio manager about Nvidia $NVDA, writing: "Do you want to make some fast money[.] Put together a thesis why nvda is oversold . . . We can destroy it." He then took financial positions in Nvidia stock and promoted it publicly on Citron's Twitter $TWTR account, representing a price target of $165. Less than two hours later, with Nvidia stock trading around $150–$151, Left had sold all his positions for a profit of at least $960,000, the Justice Department said.
The government's case also included allegations that Left tipped off certain hedge funds ahead of his public commentary in exchange for payment, then disguised the arrangements behind falsified invoices, Reuters reported.
Four of the 17 counts ended in acquittal. In a move that carries significant legal risk and is rarely attempted, Left chose to testify during the 15-day proceeding, telling jurors he stood behind every stock call he ever made and arguing that nothing in the law required him to hold a position for any particular length of time after he spoke publicly about it, Bloomberg reported.
After the verdict, Left posted on Citron Research's X account that "not once did anyone say I lied" and said he would appeal. "This is not over," he wrote.
"Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets," First Assistant U.S. Attorney Bill Essayli said in a statement. The FBI and the United States Postal Inspection Service investigated the case, with assistance from FINRA's Criminal Prosecution Assistance Group.