A short seller who made illegal trades now gets a $1M bond after being indicted on 19 counts for manipulating stock.
Prominent activist short seller Andrew Left surrendered in Los Angeles on Monday to face federal criminal charges related to securities fraud.
The charges allege that Left used his public platform, including social media posts on platforms like X (formerly Twitter) and appearances on television networks such as CNBC, to make false and misleading claims about his trading positions in various stocks.
Prosecutors claim that Left’s actions were intended to manipulate stock market activity and allow him to profit illegally, to the tune of at least $16 million, in a manner that contradicted the positions he had publicly claimed to hold.
Magistrate Judge Rozella Oliver imposed a $4 million bond with $1 million of it collateralized.
Now the short seller has to give up only $1 million out of the $16 million he made illegally, according to the bail.
Left was also sued by the Securities and Exchange Commission (SEC) Friday.
The regulator alleged that Left used his Citron Research website and social media platforms on several occasions to publicly recommend taking long or short positions in 23 companies, and then acted against those positions when the stock moved.
Left appeared on several media outlets, including CNBC, Fox Business, and Bloomberg TV, to discuss his views on stocks — all platforms that have been scrutinized by retail investors.
“Andrew Left took advantage of his readers,” Kate Zoladz, director of the SEC’s Los Angeles regional office, said in a statement.
“He built their trust and induced them to trade on false pretenses so that he could quickly reverse direction and profit from the price moves following his reports.”
The SEC alleged that Left and his firm earned $20 million in “ill-gotten profits” from the practice.
On Monday, the judge gave Left until Aug. 5 to come up with $1 million for the collateralized bond, according to Bloomberg.
His trial date is set for Sept. 24, and he was prevented from making transactions worth more than $100,000 and surrendered his passport until then.
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Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist
Other Stock Market News Today
Trump now says he will fire SEC Chair Gary Gensler, after making an appearance at this year’s Bitcoin conference in Nashville, Tennessee.
In his address at the Bitcoin 2024 conference in Nashville, Tennessee, former President Donald Trump made a direct appeal to the cryptocurrency community.
He promised to take several actions if elected, which are aimed at addressing the concerns of the crypto industry.
Specifically, Trump stated that he would put an end to the “persecution” of the crypto sector, which he attributes to the current administration’s “crusade” against bitcoin.
He also pledged to remove the chair of the Securities and Exchange Commission (SEC), likely referring to the agency’s heightened scrutiny and enforcement actions against various crypto companies and activities.
“On day one, I will fire Gary Gensler,” Trump said to a massive roar from the roughly 5,000 people seated in the audience.
“I pledge to the bitcoin community, that the day I take the oath of office, Joe Biden and Kamala Harris’ anti-crypto crusade will be over,” said Trump.
Furthermore, Trump promised to “free” a convict who is viewed as a martyr within the cryptocurrency community.
This is likely a reference to the case of a prominent figure who has been convicted and imprisoned, but is seen by many in the crypto space as a victim of unjust persecution.
This appeal to the crypto community is part of his broader effort to rally support from this influential segment of the electorate ahead of the 2024 presidential election.
However, investors in the stock market communities have also scrutinized Gary Gensler for his inactivity in tackling stock market manipulation.
Particularly in his disengagement from the MMTLP scandal.
What are your thoughts on Trump’s promise to fire Gary Gensler?
Leave your thoughts below.
Also Read: South Korea Now Finds Banks Pursued Illegal Shorting Scheme
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