Federal grand jury charges short seller Andrew Left in $16M stock manipulation scheme | Canada News Media
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Federal grand jury charges short seller Andrew Left in $16M stock manipulation scheme

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A federal grand jury in California has charged short seller Andrew Left with multiple counts of securities fraud for a $16 million stock market manipulation scheme.

The Department of Justice said in a statement on Friday that Left, who was a securities analyst, trader, and guest commentator on television channels including CNBC and Fox Business, is charged 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 stocks would fall.

The Justice Department 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.

If convicted, Left faces a maximum penalty of 25 years in prison on the securities fraud scheme count, 20 years in prison on each securities fraud count, and five years in prison on the false statements count.

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 by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money.

The indictment further alleged that before Citron would publish its commentary, Left would create long or short positions in a public company on which he was commenting in his trading accounts and prepared to quickly close those positions after Citron’s publication and take profits on the short-term price movement caused by his commentary.

Separately, the Securities and Exchange Commission said that it is charging Left and Citron in what they said was a $20 million fraud scheme that used “bait and switch” tactics to mislead investors. The SEC’s complaint, filed in the United States District Court for the Central District of California, charges Left and Citron Capital with violating antifraud provisions of the federal securities laws.

“Andrew Left took advantage of his readers. He built their trust and induced them to trade on false pretenses so that he could quickly reverse direction and profit from the price moves following his reports,” Kate Zoladz, Director of the SEC’s Los Angeles Regional Office, said in a statement.

The complaint seeks disgorgement, prejudgment interest, and civil monetary penalties against Left and Citron and conduct-based injunctions, an officer-and-director bar, and a penny stock bar against Left.

Representatives at Citron Resarch didn’t immediately respond to a request for comment. According to the complaints, Left has relocated to Boca Raton, Florida from Beverly Hills, California.

The Canadian Press. All rights reserved.

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Tensions, rhetoric abound as MPs return to House of Commons, spar over carbon price

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OTTAWA – Liberal House leader Karina Gould lambasted Conservative Leader Pierre Poilievre as a “fraudster” Monday morning after he said the federal carbon price is going to cause a “nuclear winter.”

Gould was speaking just before the House of Commons is set to reopen following the summer break. Monday is the first sitting since the end of an agreement that had the NDP insulate the Liberals from the possibility of a snap election, one the Conservatives are eager to trigger.

With the prospect of a confidence vote that could send Canadians to the polls, Bloc Québécois Leader Yves-François Blanchet cast doubt on how long MPs will be sitting in the House of Commons.

“We are playing chicken with four cars. Eventually, one will eat another one, and there will be a wreckage. So, I’m not certain that this session will last a very long time,” Blanchet told reporters on Monday.

On Sunday Poilievre said increasing the carbon price will cause a “nuclear winter,” painting a dystopian picture of people starving and freezing because they can’t afford food or heat due the carbon price.

He said the Liberals’ obsession with carbon pricing is “an existential threat to our economy and our way of life.”

The carbon price currently adds about 17.6 cents to every litre of gasoline, but that cost is offset by carbon rebates mailed to Canadians every three months.

The Parliamentary Budget Office provided analysis that showed eight in 10 households receive more from the rebates than they pay in carbon pricing, though the office also warned that long-term economic effects could harm jobs and wage growth.

Gould accused Poilievre of ignoring the rebates, and refusing to tell Canadians how he would make life more affordable while battling climate change.

“What I heard yesterday from Mr. Poilievre was so over the top, so irresponsible, so immature, and something that only a fraudster would do,” Gould said from Parliament Hill.

The Liberals have also accused the Conservatives of dismissing the expertise of more than 200 economists who wrote a letter earlier this year describing the carbon price as the least expensive, most efficient way to lower emissions.

Poilievre is pushing for the other opposition parties to vote the government down and trigger what he calls a “carbon tax election.”

Despite previously supporting the consumer carbon price, NDP Leader Jagmeet Singh has been distancing himself from the policy.

Singh wouldn’t say last week whether an NDP government would keep the consumer carbon price. On Monday, he told reporters Canadians were already “doing their part” to fight climate change, but that big polluters are getting a “free ride.”

He said the New Democrats will focus this fall on affordability issues like housing and grocery costs, arguing the Liberals and Conservatives are beholden to big business.

“Their governments have been in it for CEOs and big corporations,” he told reporters Monday on Parliament Hill.

Poilievre intends to bring a non-confidence motion against the government as early as this week but would likely need both the Bloc and NDP to support it. Neither have indicated an appetite for triggering an election.

Gould said she has no “crystal ball” over when or how often Poilievre might try to bring down the government.

“I know that the end of the supply and confidence agreement makes things a bit different, but really all it does is returns us to a normal minority parliament,” she said.

“That means that we will work case-by-case, legislation-by-legislation with whichever party wants to work with us,” she said, adding she’s already been in touch with colleagues in other parties to “make Parliament work for Canadians.”

The Liberals said at their caucus retreat last week that they would be sharpening their attacks on Poilievre this fall, seeking to reverse his months-long rise in the polls.

Freeland suggested she had no qualms with criticizing Poilievre’s rhetoric while having a colleague call him a fraudster.

She said Monday that the Liberals must “be really clear with Canadians about what the Conservative Party is saying, about what it is standing for — and about the veracity, or not, of the statements of the Conservative leader.”

Meanwhile, Gould insisted the government has listened to the concerns raised by Canadians, and received the message when the Liberals were defeated in a Toronto byelection in June, losing a seat the party had held since 1997.

“We certainly got the message from Toronto-St. Paul’s and have spent the summer reflecting on what that means and are coming back to Parliament, I think, very clearly focused on ensuring that Canadians are at the centre of everything that we do moving forward,” she said.

The Liberals are bracing, however, for the possibility of another blow Monday night, in a tight race to hold a Montreal seat in a byelection there. Voters in LaSalle—Émard—Verdun are casting ballots today to replace former justice minister David Lametti, who was removed from cabinet in 2023 and resigned as an MP in January.

The Conservatives and NDP are also in a tight race in Elmwood-Transcona, a Winnipeg seat that has mostly been held by the NDP over the last several decades.

There are several key bills making their way through the legislative process, including the online harms act and the NDP-endorsed pharmacare bill, which is currently in the Senate.

This report by The Canadian Press was first published Sept. 16, 2024.



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B.C. commits to earlier, enhanced pensions for wildland firefighters

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VICTORIA – British Columbia Premier David Eby has announced his government has committed to earlier and enhanced pensions for wildland firefighters, saying the province owes them a “deep debt of gratitude” for their efforts in battling recent fire seasons.

Eby says in a statement the province and the BC General Employees’ Union have reached an agreement-in-principle to “enhance” pensions for firefighting personnel employed directly by the BC Wildfire Service.

It says the change will give wildland firefighters provisions like those in other public-safety careers such as ambulance paramedics and corrections workers.

The statement says wildfire personnel could receive their earliest pensions up to five years before regular members of the public service pension plan.

The province and the union are aiming to finalize the agreement early next year with changes taking effect in 2026, and while eligibility requirements are yet to be confirmed, the statement says the “majority” of workers at the BC Wildfire Service would qualify.

Union president Paul Finch says wildfire fighters “take immense risks and deserve fair compensation,” and the pension announcement marks a “major victory.”

“This change will help retain a stable, experienced workforce, ready to protect our communities when we need them most,” Finch says in the statement.

About 1,300 firefighters were employed directly by the wildfire service this year. B.C. has increased the service’s permanent full-time staff by 55 per cent since 2022.

About 350 firefighting personnel continue to battle more than 200 active blazes across the province, with 60 per cent of them now classified as under control.

This report by The Canadian Press was first published Sept. 16, 2024.

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AtkinsRéalis signs deal to help modernize U.K. rail signalling system

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MONTREAL – AtkinsRéalis Group Inc. says it has signed a deal with U.K. rail infrastructure owner Network Rail to help upgrade and digitize its signalling over the next 10 years.

Network Rail has launched a four-billlion pound program to upgrade signalling across its network over the coming decade.

The company says the modernization will bring greater reliability across the country through a mixture of traditional signalling and digital control.

AtkinsRéalis says it has secured two of the eight contracts awarded.

The Canadian company formerly known as SNC-Lavalin will work independently on conventional signalling contract.

AtkinsRéalis will also partner with Construcciones y Auxiliar de Ferrocarriles, S.A.(CAF) in a new joint venture on a digital signalling contract.

This report by The Canadian Press was first published Sept. 16, 2024.

Companies in this story: (TSX:ATRL)

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