Andrew Left’s Securities Fraud Trial Highlights Retail Investor Losses in Cannabis Short-Selling

Federal prosecutors in Los Angeles have charged Andrew Left, founder of Citron Research, with securities fraud for allegedly using his media platform to influence cannabis-related stocks and profit more than $20 million. The case, US v. Left, 24-cr-456, opened in May 2026 and features testimony from retail investors who say his reports wiped out their retirement savings.

Business Insider

Short sellers profit from falling prices, a practice under scrutiny by the U.S. Justice Department and the Securities and Exchange Commission. Prosecutors presented emails showing Left coordinating with hedge-fund adviser Sunny Puri on cannabis short positions. Central figures include Left, Citron Research, investor Billy Banks, and car-salesman Adam Gray.

Bloomberg

In August 2018 Left issued a short report on Cronos Group, targeting a price drop from $12 to $7.50. That year, Banks moved $110 k from his 401(k) into CV Sciences (CVSI) and later Namaste, later losing about $80 k on CVSI and roughly 85 % on Namaste. The trial began May 14-15 2026.

Business Insider

Prosecutors argue Left used his “hot voice” to manipulate prices and collude with hedge funds. The defense counters that Left never advised buying the targeted stocks and that his short forecasts proved accurate; they note Banks could have limited losses by selling immediately after the reports. In a podcast, Left said retail investors in cannabis stocks had no business being in the market.

Bloomberg

Retired firefighter Billy Banks testified that after vacation his CVSI shares fell 50 % and his Namaste position neared zero, leaving him with an 85 % loss. He called the experience “devastating.” Car-salesman Adam Gray said Left’s Cronos short “scared” him and prompted an SEC complaint, arguing Left omitted material information about the company’s land assets.

Bloomberg

The prosecution maintains Left’s commentary directly triggered the price drops, while the defense argues market forces would have corrected the valuations and that Left’s short positions were lawful. It remains unclear whether Gray’s SEC tip initiated the broader investigation.

Business Insider

The trial spotlights the vulnerability of individual investors to influential short-seller commentary and may shape future regulatory guidance on disclosure and coordination. Jurors will decide whether Left’s conduct meets the legal threshold for fraud, while the DOJ and SEC continue parallel inquiries.

Bloomberg

• “I have a hot voice in cannabis let’s take advantage of it,” — Andrew Left, Founder, Citron Research

Bloomberg

• “I saw my funds going to zero,” — Billy Banks, Retired Firefighter, Texas

Bloomberg

• “I got scared,” — Adam Gray, Car Salesman, South Dakota

Bloomberg

• “It’s all retail investors that had no business being in the stock market,” — Andrew Left, Citron Research

Bloomberg