More proof of illegal stock manipulation now surfaces as the Justice Department and SEC charge a prominent short seller activist.
According to the U.S. authorities, prominent short seller Andrew Left and his investment firm Citron Capital have been charged with market manipulation and investor fraud.
The Justice Department and Securities and Exchange Commission (SEC) claim that for years, Left has been making misleading statements about his trading positions in various stocks, including Nvidia and Tesla, in order to profit from market movements.
The authorities allege that Left would use his social media platforms and media appearances to promote his purported long or short positions in certain stocks.
However, he would quickly reverse those positions, making as much as $20 million in the process.
This practice of making false or misleading claims about his trading activities is considered market manipulation and defrauding of investors.
The charges against Andrew Left and Citron Capital suggest that the authorities have identified a pattern of behavior where the prominent short seller has been exploiting his public platform to artificially influence stock prices for his own financial gain.
This case highlights the regulators’ efforts to crack down on such manipulative practices in the financial markets.
The allegations underscore the importance of transparency and the need for investors to carefully scrutinize the information they receive from influential market participants, especially those with significant positions or the ability to sway public opinion about individual stock.
Left, 54, also concealed that third-parties, including hedge funds, fed his commentary and that in return for compensation he alerted them before publicizing his positions, allowing them to profit or mitigate losses, the Justice Department said.
“To maintain the false pretense that Citron’s recommendations and positions were sincerely held, defendant Left made false and misleading representations and half-truths about his economic incentives, conviction in Citron’s analyses, and valuations of Targeted Securities,” the DOJ said.
Left plans to fight the charges.
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Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist
Other Stock Market News Today
Trump now says he will fire SEC Chair Gary Gensler, after making an appearance at this year’s Bitcoin conference in Nashville, Tennessee.
In his address at the Bitcoin 2024 conference in Nashville, Tennessee, former President Donald Trump made a direct appeal to the cryptocurrency community.
He promised to take several actions if elected, which are aimed at addressing the concerns of the crypto industry.
Specifically, Trump stated that he would put an end to the “persecution” of the crypto sector, which he attributes to the current administration’s “crusade” against bitcoin.
He also pledged to remove the chair of the Securities and Exchange Commission (SEC), likely referring to the agency’s heightened scrutiny and enforcement actions against various crypto companies and activities.
“On day one, I will fire Gary Gensler,” Trump said to a massive roar from the roughly 5,000 people seated in the audience.
“I pledge to the bitcoin community, that the day I take the oath of office, Joe Biden and Kamala Harris’ anti-crypto crusade will be over,” said Trump.
Furthermore, Trump promised to “free” a convict who is viewed as a martyr within the cryptocurrency community.
This is likely a reference to the case of a prominent figure who has been convicted and imprisoned, but is seen by many in the crypto space as a victim of unjust persecution.
This appeal to the crypto community is part of his broader effort to rally support from this influential segment of the electorate ahead of the 2024 presidential election.
However, investors in the stock market communities have also scrutinized Gary Gensler for his inactivity in tackling stock market manipulation.
Particularly in his disengagement from the MMTLP scandal.
What are your thoughts on Trump’s promise to fire Gary Gensler?
Leave your thoughts below.
Also Read: South Korea Now Finds Banks Pursued Illegal Shorting Scheme
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