Short-seller Andrew Left seeks new trial after witness entangled in insider-trading probe
Andrew Left's lawyers have asked a judge to overturn his securities-fraud conviction, saying the trial was unfair because a key witness, Daniel Bachus, was later caught up in an undisclosed insider-trading investigation.
A federal jury in Los Angeles found short-seller Andrew Left guilty of 13 securities-fraud charges, alleging he used Citron Research reports to set target prices while secretly trading opposite positions. Left’s attorneys have filed a motion asking the presiding judge to vacate the verdict, claiming the trial was fundamentally unfair because they could not question Daniel Bachus, Grand Canyon Education’s CFO, who testified that Left’s reports contained false statements.
Weeks after the trial, Grand Canyon Education placed Bachus on paid leave in connection with an ongoing insider-trading investigation, which prosecutors referenced but did not disclose to the defense during the trial. The government maintains that Left sought to discredit Bachus through a “shadow investigation,” while the defense argues the undisclosed probe would have destroyed the witness’s credibility. Left has not yet been sentenced and also faces a pending SEC civil action. Both the Justice Department and the SEC declined to comment.
Why it matters
The case could set precedent for how short-seller disclosures are judged and influence future securities-fraud prosecutions.
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