A short seller who shorted GameStop now surrenders to securities fraud charges in Los Angeles in the latest stock market scandal.
According to the authorities, prominent activist short seller Andrew Left has surrendered in Los Angeles to face federal criminal charges related to securities fraud.
The 54-year-old, who runs the Citron Capital hedge fund, is expected to appear before a U.S. Magistrate Judge in the District Court in Los Angeles, where his bail conditions will be set.
The charges allege that Left used his public platform, including social media posts on platforms like X (formerly Twitter) and appearances on television networks such as CNBC, to make false and misleading claims about his trading positions in various stocks.
Prosecutors claim that Left’s actions were intended to manipulate stock market activity and allow him to profit illegally, to the tune of at least $16 million, in a manner that contradicted the positions he had publicly claimed to hold.
This case highlights the regulatory authorities’ efforts to crack down on alleged market manipulation and fraudulent practices by influential market participants.
The charges against Andrew Left suggest that he is accused of exploiting his public platform and media presence to artificially influence stock prices for his own financial gain, in a manner that allegedly defrauded investors.
The surrender and impending court appearance mark a significant development in the ongoing legal proceedings against the prominent short seller and sheds light to the manipulation that occurs in the markets.
Left’s lawyer, James Spertus, told CNBC on Monday that prosecutors had demanded Left surrender Monday, and that the U.S. Attorney’s Office originally intended to request a $10 million cash deposit for his bail.
“Then they wanted several million dollars,” Spertus said.
“It doesn’t make any sense,” the defense lawyer said, arguing that Left is not a flight risk, or a danger to the community and that there are no victims in the case.
“This should be Mr. Left released on his own recognizance,” Spertus said.
“There’s no reason for any bond in this case.”
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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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