Tag: US Department Of Justice

BEVERLY HILLS—On June 2, the U.S. Department of Justice (DOJ) announced the conviction of Andrew Left, 55, formerly of Beverly Hills. He is the founder of Citron Research and was found guilty by a federal jury in Los Angeles on 12 counts of security fraud. Left ran a $21 million market manipulation scheme from 2018-2023. He is charged securities fraud and one count of operating a securities fraud scheme. Left now resides in Boca Raton, Florida. “Andrew Left used his expertise to profit at the expense of retail investors, ordinary people who owned the stocks he targeted. He callously boasted that it was like ‘taking candy from a baby,’” stated the DOJ’s Assistant Attorney General A. Tysen Duva. “Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” said First Assistant United States Attorney Bill Essayli. A fair and transparent securities market is a foundation of our nation’s financial system. We will continue to bring to justice individuals who abuse the public trust placed in financial advisors.” “Frauds such as the one perpetrated by Left can erode investor confidence which impacts our capital markets” said Patrick Grandy, Assistant Director in Charge of the FBI Los Angeles Field Office. “While this conviction cannot make up for the significant and emotional harm he inflicted upon his unwitting investors, it does send a message to those who may be looking to profit from similar schemes – think twice because the FBI has a proven track record of rooting out fraudsters who illegally tilt the playing field against honest investors and undermine confidence in our markets.” “Andrew Left abused his position and influence when he devised a scheme known as ‘Short-and-Distort,’ to manipulate the market for personal gain. Now he’s facing the consequences. Postal inspectors and our federal counterparts continue to partner to ensure spreading misleading or false material to the investing public has only one result: jail time,” stated Eric Shen of the U.S. Postal Inspections Service. Left’s sentencing is scheduled for August 31, and he faces a maximum penalty of 25 years of prison time. The USPIS and the FBI are investigating this case. By Sharon

STUDIO CITY—On February 5, Matthew Jason Kroth, aka “Speedy,” of Studio City was sentenced to 200 months in federal prison for his part in a conspiracy scheme targeting the elderly. Kroth reportedly broke into the home of an elderly man living alone, and later returned to steal items, jewelry, and mail. According to a press release issued by the U.S. Department of Justice, U.S. Attorney’s Office Central District of California, Kroth pleaded guilty in October 2023 to one count of conspiracy to commit wire fraud and one count of possession with intent to distribute methamphetamine. He has been in federal custody since August 2023. “According to his plea agreement and other court documents, Kroth in the summer of 2020 broke into the home of an elderly man, who was living alone in the house at the time. Later, Kroth returned to the victim’s home to steal items, including mail and jewelry. By this time, the victim had died, but his death went unreported to authorities. Kroth then provided to his co-conspirators the victim’s PII and his mail so they could impersonate the victim and steal his assets, including his home and money in his financial accounts. Kroth’s co-conspirators forged a trust document and power-of-attorney forms so that they could pretend that the now-deceased victim supported the sale of his assets for the benefit of Kroth’s accomplices. The conspirators then dismembered and disposed of the victim’s body so his death would be hard to discover.” Caroline Herrling, 46, of West Hills was leader in the scheme who brought Kroth into the conspiracy. She is currently incarcerated and serving a 20-year prison sentence. Herrling pleaded guilty in March 2023. She has been in federal custody since January 2023. James Rhys Kantor, 46, is a resident of Cumming, Georgia. Kantor was formerly of West Hollywood. His sentencing date is scheduled for February 19. In October 2024, he pleaded guilty to one count of conspiracy to commit wire fraud and faces the statutory maximum sentence of 20 years in federal prison. Anyone age 60 or older who may have fallen victim to wire fraud is asked to call the National Elder Fraud Hotline at 1-833-372-8311.   By Sharon