Top short seller Andrew Lift convicted of securities fraud after getting caught saying ‘taking candy from a baby’

A federal grand jury in California has convicted short seller Andrew Left of securities fraud. Left, who was a securities analyst, trader, and guest commentator on television channels including CNBC and Fox Business, was charged in July 2024 with one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. As a short seller, Left would make money betting that stocks would fall. The Justice Department said Tuesday that Left was convicted of one count of participating in a securities fraud scheme and 12 counts of securities fraud. He is scheduled to be sentenced on Aug. 31. He faces a maximum penalty of 25 years in prison. “Andrew Left used his expertise to profit at the expense of retail investors, ordinary people who owned the stocks he targeted. He callously boasted that it was like ‘taking candy from a baby,’” Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, said in a statement. “Egregious schemes like this strike at the heart of free, fair and open markets, and warrant prosecution when they involve criminal manipulation. Investors should have confidence that U.S. markets are safe and free from the type of deliberate manipulation that Left engaged in to enrich himself at the expense of American investors.” The Justice Department previously said that Left conducted business under the name Citron Research, which had a website that published investment recommendations. He published research on companies ranging from Tesla and GameStop to Grand Canyon Education and Peloton. According to the indictment, Left would comment on publicly traded companies and make recommendations on the shares. The commentary often included sensationalized headlines (“Investors Peddling Themselves into Frenzy”) and exaggerated language to maximize the reaction it would get from the stock market. As alleged, Left knowingly exploited his ability to move stock prices