Ryan Choi, a 35-year-old Beverly Hills resident and associate of prominent short seller Andrew Left, has agreed to pay $1.8 million to settle Securities and Exchange Commission charges related to misleading stock recommendations made through Citron Research.
The SEC filed a civil suit in Los Angeles federal court, alleging that Choi “negligently engaged in a scheme to defraud” readers through his involvement with two of Citron Research’s social media posts in December 2020. According to the charges, Choi assisted Left in preparing research content but failed to conduct adequate due diligence.
Related: Left Behind Bars? Citron Capital’s Andrew Left Faces $16-Million Fraud Allegations
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“Choi quickly traded on price increases that came after the two Citron Research tweets, and negligently failed to ensure that this trading activity was adequately disclosed in the tweets,” the SEC stated in its complaint. The agency reported that Choi profited $1,647,217 from trading around these two tweets.
The settlement includes a $115,231 civil penalty, disgorgement of profits, and $64,818 in prejudgment interest. Choi agreed to be permanently enjoined from violating Section 17(a)(3) of the Securities Act of 1933, though he neither admitted nor denied the allegations.
The case expands an existing SEC investigation into Left, who faces both SEC and Department of Justice charges filed in July 2024. Those charges allege Left defrauded Citron Research followers by publishing false and misleading statements about his stock trading recommendations.
Information for this story was found via Reuters, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
