The U.S. Securities and Exchange Commission (SEC), filed a lawsuit against prominent short investor Andrew Left and his firm 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 firm, Citron Research, routinely made exaggerated or misleading statements about their respective stocks.
Citron Research announced in a recent X post that they are short Gamestop (GME) stock.
The SEC made the following statement:
“The Securities and Exchange Commission filed a lawsuit today against short seller Andrew Left and his firm, Citron Capital LLC, for allegedly engaging in a $20 million, multi-year scheme to defraud his followers by publishing false and misleading statements regarding purported stock trading recommendations.
The complaint alleges that Andrew Left and Citron Capital made numerous false and misleading statements in connection with the scheme.
“Andrew Left took advantage of investors. He gained their trust and encouraged them to trade under false pretenses so he could quickly reverse the price movements he recommended and profit from their short positions.”
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.
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