Andrew Left conviction draws the line on tweet-and-trade schemes
A Los Angeles jury found Citron Research founder Andrew Left guilty of securities fraud, marking the first major conviction for what prosecutors called a 'tweet-and-trade' scheme. The case hinged not on whether Left's short reports were false, but on his alleged practice of secretly reversing positions while publicly maintaining commitment to his calls, generating at least $16 million in profits according to the DOJ. Left faces up to 25 years in prison when sentenced. The verdict creates a new boundary for activist short sellers and online commentators: publishing aggressive market views remains protected, but misrepresenting your actual trading behavior while doing so is now confirmed criminal fraud.
Sources
- DOJ Criminal Case — Justice Department
- SEC Enforcement Action — SEC
How Briefed reports and verifies storiesReport a correction
The market, before the open.
Briefed Daily connects the morning’s business and economic news to what matters in markets.