Andrew Left
- Left’s trial on the fraud charges is scheduled for September.
- The magistrate judge set a $1 million surety bond.
Andrew Left, a well-known short seller, has pleaded not guilty to US accusations of fraud, paving the way for a high-profile legal battle over his strategies.
Left made his first hearing in federal court in Los Angeles on Monday after being charged by the Justice Department last week. Prosecutors claim Left gave misleading testimony to investigators and manipulated the market to profit from his trading. He might spend decades in jail if convicted.
Judge Rosella Oliver set a $4 million unsecured bond and a $1 million collateral bond amid a hearing that endured approximately 40 minutes. The amount was less than the government had sought. She gave him until Aug. 5, 2024, to come up with the $1 million.
To support his claim that Left was a flight risk, Assistant U.S. Attorney Brett Sagel listed assets worth more than $70 million, including a property abroad. Sagel commented, “He could live a very luxurious life if he left this country.”
Left’s business activity has been restricted, and he may not make financial transactions of more than $100,000 without special permission while he awaits trial. His trial date is set for September 24. Besides having to surrender his passport, he is also banned from domestic travel.
Over time, Left became well-known among the group of investors that specialize in betting against specific equities. However, prosecutors now claim he used his power and the platform, Citron Research, to guide trade in ways that benefited his personal investments.
According to the Justice Department, Left’s public comments on a stock would give the impression that his trading behavior was consistent. According to prosecutors, the Left would often close positions rapidly after issuing a study report or making statements. This would allow him to take advantage of short-term price changes.
According to Left’s attorney, James Spertus, the government’s case against Left is “flawed,” and there was no need for Left to personally reveal his intention to trade. He clarified that the government is not accusing the Left of disseminating false information.
The Left case arises from a broader U.S. initiative to investigate ties between skeptical researchers and hedge firms. Industry skeptics are already using prosecutions of the Left as fodder.
Also on Friday, the U.S. Securities and Exchange Commission filed a civil case against Left for suspected legal violations.
