Key facts
- Andrew Left's lawyers want his fraud conviction tossed.
- A key prosecution witness is under investigation for insider trading.
- Left was convicted of 13 counts of securities fraud in June.
- Prosecutors claim the defense overstated the witness's role.
- The prosecution team stated they learned of the probe after the trial.
Andrew Left's lawyers are seeking to overturn his conviction on 13 counts of securities fraud, arguing that the trial was unfair due to the non-disclosure of an insider trading probe involving a key prosecution witness. The lawyers contend that this evidence should have been available for cross-examination to challenge the credibility of Daniel Bachus, CFO of Grand Canyon Education.
Left, founder of Citron Research, was found guilty in June by a federal jury in Los Angeles. Prosecutors alleged he deceived investors by using social media and research reports to manipulate stock prices, including those of Tesla, Nvidia, and Palantir, while trading them privately. Bachus was reportedly the only witness to testify that Left used his reports to lie about a company.
Grand Canyon Education disclosed in August that Bachus was placed on paid administrative leave in connection with an investigation into a non-employee's trades of the company's stock. Prosecutors referred to this as an insider trading investigation. The prosecution team has stated they were unaware of the investigation until after the trial concluded, while Left's lawyers argue this information would have been crucial in discrediting the witness.