Ryan Choi Settles SEC Charges

WASHINGTON (Reuters) – Ryan Choi, an associate of U.S. short seller Andrew Left of Citron Research, has agreed to pay $1.8 million to settle the U.S. Securities and Exchange Commission (SEC) charges related to two of Citron's stock recommendations, according to court documents.

The SEC accused Choi of "negligently engaging in a scheme to defraud" readers of Citron Research in connection with two social media posts recommending stocks in two U.S.-listed companies.

A lawyer for Choi did not respond immediately to requests for comment.

In December 2020, Choi collaborated with Left on research and content for the recommendations, but the SEC alleged he did not conduct adequate research or due diligence. Choi also traded on price increases that followed the tweets, yet failed to disclose this trading.

Without admitting or denying the allegations, Choi agreed to pay $1.8 million in disgorgement of profits, prejudgment interest, and fines to settle the charges.

This settlement is likely a setback for Left, who faces SEC and Department of Justice charges filed in July for allegedly defrauding his Citron Research followers by making false and misleading statements about his stock trading recommendations.