Short Seller Andrew Left Turns Himself In On Securities Fraud Charges: Report

Citron Research founder Andrew Left turned himself in to authorities in Los Angeles on Monday to face federal securities fraud charges.

What Happened: According to a CNBC report, Left was scheduled to appear before Magistrate Judge Rozella Oliver in a U.S. District Court in L.A. at 4:30 p.m. ET on Monday after he was indicted last week on 19 criminal counts by a grand jury.

A spokesman for the U.S. Attorney’s Office reportedly said the activist short seller surrendered Monday afternoon. He is expected to be released after bail terms are set by the judge.

Left’s lawyer James Spertus told CNBC that prosecutors originally planned to request a $10 million cash deposit for Left’s bail. The terms of the bail do not appear to be public at the time of writing.

The indictment against Left claims the short seller manipulated stock prices of at least 15 companies over five years, resulting in approximately $16 million in illegal profits. The charges imply Left would make his positions public, set ambitious price targets and then quickly close out those positions once his commentary had caused a given stock to move.

According to reports, Left could face up to 20 years in prison for each of the securities fraud counts and several more years for related charges if found guilty.

Regardless of whether Left is found guilty, the case is likely to have a chilling effect on short sellers moving forward, Left’s lawyer told CNBC.

“People will stop sharing their research with the market,” Spertus said. “It’s really bad for the financial markets to have a prosecution like this when the government agrees that the public statements were truthful.”

Read Next:

Courtesy: Benzinga