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US: Federal jury convicts Andrew Left over $21 million stock fraud

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Washington, June 2: A federal jury in Los Angeles has found prominent stock analyst Andrew Left, founder of Citron Research, guilty of orchestrating a years-long scheme that prosecutors said manipulated stock prices and generated at least $21 million in illicit profits by trading against the very recommendations he promoted to investors.

Left, 55, formerly of Beverly Hills and now a resident of Boca Raton, Florida, was convicted of one count of securities fraud scheme and 12 counts of securities fraud after a 15-day trial, according to the US Attorney’s Office for the Central District of California.

Left leveraged his reputation as a market commentator and frequent guest on major business television networks to influence stock prices while secretly positioning himself to profit from short-term market movements, federal prosecutors alleged.

“Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” said First Assistant United States Attorney Bill Essayli. “A fair and transparent securities market is a foundation of our nation’s financial system. We will continue to bring to justice individuals who abuse the public trust placed in financial advisors.”

Patrick Grandy, Assistant Director in Charge of the FBI’s Los Angeles Field Office, said the case highlighted the damage caused by market manipulation.

“Frauds such as the one perpetrated by Left can erode investor confidence which impacts our capital markets,” Grandy said. “While this conviction cannot make up for the significant and emotional harm he inflicted upon his unwitting investors, it does send a message to those who may be looking to profit from similar schemes – think twice because the FBI has a proven track record of rooting out fraudsters who illegally tilt the playing field against honest investors and undermine confidence in our markets.”

According to trial evidence presented in court, Left, operating under the online brand Citron Research, published investment commentary through a website and social media accounts, routinely issued opinions on publicly traded companies, often accompanied by target prices and representations of his own trading positions.

Federal prosecutors alleged that Left knew Citron’s market-moving influence and exploited it. Before publishing commentary, he allegedly built long or short positions in targeted companies, frequently using short-dated options contracts designed to benefit from immediate price swings after his reports were released.

The government said he often closed those positions shortly after publication, sometimes at prices that differed sharply from the longer-term targets he publicly promoted. Behind the scenes, prosecutors argued, he was taking positions opposite to the message he was delivering to investors.

One example presented at trial involved chipmaker Nvidia in November 2018. Prosecutors said Left encouraged a portfolio manager to develop a bullish investment thesis, accumulated positions in the company, and then publicly posted on Citron’s social media account: “Citron buys $NVDA. This is the first time in 2 years stock offers an appealing risk-reward to investors . . . We see $165 before we see $120.” Despite that public projection, prosecutors said he sold his positions less than two hours later, earning more than $960,000 in profit.

The jury acquitted Left on four securities fraud counts related to trades involving four specific companies. He is scheduled to be sentenced on August 31 before US District Judge Virginia A. Phillips. Prosecutors said he faces a statutory maximum sentence of 25 years in federal prison on the securities fraud scheme count and up to 20 years on each securities fraud count.

Citron Research became one of Wall Street’s best-known activist research firms over the past two decades, often publishing reports that challenged valuations of publicly traded companies. Left gained widespread visibility through frequent appearances on financial television networks and developed a substantial following among retail and institutional investors.

International News

India sends another 11 tonnes of relief supplies to flood-hit Nepal

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New Delhi, Sep 19: Continuing with its humanitarian assistance to Nepal, India on Saturday sent another 11 tonnes of relief supplies to support the Himalayan nation’s recovery from the devastating flash floods.

“Dispatched another 11 tonnes of relief material to Nepal, including medicines, forensic supplies, tents, hygiene kits, sleeping bags and other essential supplies. India continues to support Nepal’s recovery. Neighbourhood First,” External Affairs Minister (EAM) S. Jaishankar posted on X.

According to the Ministry of External Affairs (MEA), this was the 9th Indian Air Force (IAF) plane carrying relief material as Nepal struggles to recover from the deadly flash floods of August 26, which have caused widespread destruction, left over 1300 people dead, and thousands still missing.

On Friday, Nepal’s Finance Minister, Swarnim Wagle, thanked the Government of India for its support in rescue and relief efforts following the recent flash flood in Rasuwa, the Embassy of Nepal in India stated.

“Dr. Swarnim Wagle, Finance Minister of Nepal, met Dr. S Jaishankar, External Affairs Minister of India, in New Delhi. Minister Wagle thanked the Government of India for its support in rescue and relief efforts following the recent flash flood in Rasuwa,” the Embassy wrote on X.

“The two Ministers discussed ways to deepen the longstanding Nepal-India friendship and strengthen bilateral cooperation, particularly in investment, energy and connectivity,” it added.

Last week, relief and rescue items, including materials for tunnel rescue and forensic supplies, sent by India were handed over to Mahabir Pun, Nepal’s Minister of Science, Technology and Innovation.

“The 8th Indian flight with relief and rescue items, including materials for tunnel rescue and forensic supplies, reached Kathmandu and were handed over to Nepal’s Minister for Science, Technology and Innovation, Mahabir Pun,” Ambassador of India to Nepal, Naveen Srivastava, said on X.

India expedited the delivery of relief supplies, equipment and expert personnel to Nepal through nine special flights since August 26 in the wake of the devastating flash floods.

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Yemen Houthis report 300 Saudi airstrikes this week

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Sanaa, Sep 19: Yemen’s Houthi group has said that Saudi warplanes launched 26 airstrikes on the southwestern province of Taiz over the past 24 hours, bringing the total number of strikes across Yemen this week to 300 as air operations intensified alongside ongoing ground battles on several fronts.

Houthi military spokesperson Yahya Sarea said in a statement on social media platform X on Friday (local time) that Saudi F-15 fighter jets carried out the 26 strikes on Taiz after taking off from Khamis Mushait Air Base in southwestern Saudi Arabia.

Sarea added that this week’s 300 airstrikes across nine Yemeni provinces involved F-15 and Typhoon fighter jets operating from Saudi air bases of Khamis Mushait and King Fahd, reports Xinhua news agency.

Saudi authorities had no immediate comment.

The reported strikes came as heavy fighting continued Friday around the Kahbub mountain range in the southern province of Lahj, near the strategic Bab al-Mandab Strait, while clashes persisted across southwestern Taiz and in oil-rich Marib farther northeast.

The latest escalation follows significant Houthi advances along Yemen’s southwestern Red Sea coast earlier this month. Yemen’s conflict erupted in late 2014 when the Houthis seized the capital Sanaa and much of northern Yemen, prompting a Saudi-led coalition to intervene in March 2015 in support of the internationally recognised Yemeni government.

Meanwhile, explosions were heard in the Saudi capital Riyadh early Saturday. Local residents received air defence alerts via mobile apps.

The Saudi Directorate of Civil Defence later issued a statement on X saying the danger has passed in Riyadh and Al-Kharj and urged residents to continue following its instructions and avoid gathering or filming.

Earlier, it had warned: “An alert has been issued by the National Early Warning Platform for Emergency Cases in Al-Kharj Governorate to warn of a danger.”

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Ukraine receives 3.3 billion euros from EU for defence needs

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Kyiv, Sep 19: Ukraine has received a new 3.3-billion-euro (about 3.78 billion US dollars) tranche from the European Union to finance priority defence needs, Ukrainian Prime Minister Sergii Koretskyi said Friday.

The funds will be used, in particular, to purchase missiles and drones, Koretskyi said on Telegram.

The tranche was disbursed under the Ukraine Support Loan mechanism, which envisages up to 45 billion euros in assistance to Ukraine in 2026, including funding for defence and budgetary support.

The EU finalised the 90-billion-euro support loan for Ukraine in April, aiming to provide budgetary and defence support to the country in 2026 and 2027, reports Xinhua news agency.

Meanwhile, the Russian Foreign Ministry stated on Friday it had summoned Britain’s charge d’affaires in Russia, Danae Dholakia, over London’s increased arms supplies to Ukraine.

On August 24, British Prime Minister Andy Burnham’s office announced that the country had authorised defence company MBDA to release classified information on British components of the long-range SCALP missile. The information will help Kyiv assemble these weapons.

Britain’s “sharply confrontational line on the Ukrainian track is clearly subordinated to the task of dragging out and escalating the armed conflict by all means, and only pushes further away the prospect of its political settlement,” said the ministry in a statement.

According to the foreign ministry, Dholakia was informed that Russia reserved the right to take necessary retaliatory measures in accordance with its right to self-defence.

The foreign ministry also warned that any British military facilities on Ukrainian territory used to launch strikes against Russia would be regarded as legitimate targets.

Additionally, the Russian Defence Ministry said on Friday that Russian forces conducted two massive and five group strikes against Ukrainian defence plants, logistics hubs, energy and transport infrastructure and seized ten settlements in a week.

Among the hit targets were defence, metallurgical, motor and electronic enterprises, military logistics and distribution centres, fuel-power, railway and road infrastructure facilities, drone manufacturing workshops and storage facilities, ammunition and fuel depots, ports, as well as temporary deployment areas for Ukrainian armed forces and foreign mercenaries.

Regarding sea targets, the ministry added that 12 Ukrainian dry cargo ships, two sea ferries, one tanker and one tugboat were hit.

Over the week, Russian air defence systems shot down 44 guided aerial bombs, eight HIMARS rockets, two Neptune long-range guided missiles and 5,706 Ukrainian drones.

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