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Snapshot 2:Fri, Jul 26, 2024 6:40:59 PM GMT last edited by Brian

GameStop Short-Seller Charged With $16M Fraud

GameStop Short-Seller Charged With $16M Fraud

Above: June 3, 2024: The Gamestop company logo is seen on display at the New York Stock Exchange during afternoon trading in New York City. Image copyright: Michael M. Santiago/Staff/Getty Images News via Getty Images

The Facts

  • The US Justice Department (DOJ) has charged Andrew Left, who bet against, or shorted, the GameStop stock, of making $16M over five years by misleading investors. He faces 17 counts of securities fraud and one count of lying to federal investigators, which carries a total of 370 years in prison.

  • Prosecutors claim he used his commentary on social media and cable news "to manipulate the markets and enrich himself." He allegedly announced his stock bets and where he thought the prices would go and then closed his sales once they reached his desired price.

  • One example of his alleged crimes included him predicting stocks would fall by 50% while he sold them after they fell only a couple of percentage points. The government also claims he received inside information from other hedge funds but didn't publicly talk about it until after the trades were made.


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