According to Foresight News, the U.S. Securities and Exchange Commission (SEC) and the Department of Justice simultaneously filed charges against Andrew Left and his company Citron Capital on Friday, alleging that they were involved in a multi-million dollar fraud scheme. The SEC accused Left and Citron Capital of issuing false and misleading stock recommendation statements between 2018 and 2020.

On at least 26 occasions, Left used Citron’s newsletter to recommend long or short positions in stocks that matched his own holdings, followed by an average stock price move of 12%. The SEC said Left and his firm would then do the opposite and profit from the new stock price moves, accumulating profits of about $20 million. Kate Zoladz, director of the SEC’s Los Angeles regional office, said Left exploited readers’ trust and induced them to trade based on false information so that he could quickly do the opposite and profit from the price moves. The SEC is seeking to impose various financial penalties on Left and Citron, including conduct bans, prohibitions from serving as an officer and director, and prohibitions from participating in penny stock trading. The Justice Department’s allegations are similar, but put the fraud proceeds at $16 million and could lead to criminal charges against Left.