Outspoken activist short seller Andrew Left was convicted on securities fraud charges over manipulating stock prices — a surprise verdict that sent shock waves through Wall Street.
A jury in Los Angeles federal court found Left, 55, guilty on one securities-fraud scheme count and 12 securities-fraud counts late Monday.
The famed trader’s conviction left other short sellers wondering if they, too, are now vulnerable to market-manipulation charges.
“Amazing. I was actually criminally convicted on manipulating Nvidia Facebook and Tesla for telling the truth and making a profit. I am a bit speechless,” Left told DealBook.
“What this does for future of free speech is chilling. Can Individual investors not talk SpaceX? Wow. Still shocked,” he added.
The conviction…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.