A federal jury convicted Citron Research founder Andrew Left on 13 securities fraud counts on June 1, following a 15-day trial in Los Angeles, for using his public platform to manipulate stock prices while secretly trading against his own recommendations.
The jury found Left, 55, guilty on one count of engaging in a securities fraud scheme and 12 counts of securities fraud, acquitting him on four additional counts. US District Judge Virginia A. Phillips scheduled sentencing for August 31, where Left faces a statutory maximum of 25 years on the scheme count. Prosecutors said he earned at least $21 million from the scheme between March 2018 and October 2023.
Left would establish a long or short position in a publicly traded company, publish inflammatory commentary through Citron’s website and social media to move the stock, then immediately close his position at a profit — often well below or above the target prices he had publicly promoted. He frequently used short-dated options contracts expiring the same day he published his commentary.
The government’s clearest example: a November 2018 message Left sent to a hedge fund portfolio manager about Nvidia (Nasdaq: NVDA) ahead of a bullish Citron post. “Do you want to make some fast money,” Left wrote. “Put together a thesis why nvda is oversold . . . We can destroy it.”
Left bought short-dated Nvidia call options that morning, then posted on Citron’s X account that “Citron buys $NVDA” with a $165 target price. Less than two hours later — with Nvidia stock in the $150 to $151 range — he sold all his pre-tweet positions for a profit of at least $960,000.
On television, Left ran the same scheme. He appeared on CNBC‘s “Fast Money,” denounced one company as a “fraud,” then falsely told viewers he had covered only a “small size” of his position. He had already closed most of the trade earlier that day.
“Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” First Assistant US Attorney Bill Essayli said.
Left testified in his own defense. Outside the courthouse, he said, “I think the jury got it wrong” and signaled an appeal. His defense team maintained that no law was broken because Left genuinely believed in his stock calls. “The government wants you to convict a trader for trading like a trader,” defense attorney Eric Rosen told jurors. “This is not a case.”
Left’s attorneys filed a mistrial motion after the verdict, arguing jurors received an outdated verdict form containing an 18th count — charging Left with lying to a federal investigator — that the judge dismissed before trial. Judge Phillips has not yet ruled.
On social media after the verdict, Left claimed the jury convicted him for recommending Tesla, Nvidia, and Meta. Prosecutors established at trial that the scheme turned on the misrepresentation of his own trading positions — not the underlying stock calls.
Information for this story was found via 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.
