Chinese Publicly Traded Technology, Financial Advisor Indicted, Securities Fraud Scheme Friday — Co-CEO of Chinese Publicly Traded Technology Company and Financial Advisor Indicted for Over $100M Securities Fraud Scheme | United States Justice Department.
This included promoting the stock by impersonating real investment advisors, among others, promoting the stock on social media, and creating a false impression of market-wide buying momentum. To capitalize on OST’s artificial price inflation and to harm the victim investors, Zhao and Sen facilitated the opening of brokerage accounts for certain select investors and orchestrated the selling of the shares that they had received either heavily discounted or for no remuneration. “Today’s allegations demonstrate the FBI’s continued commitment, alongside our partners, to combatting financial crime and bringing perpetrators to justice.”“The SEC-Office of
Inspector General (SEC-OIG) will relentlessly investigate individuals who submit false filings with the SEC,” said Inspector General Kevin Muhlendorf of the SEC. A federal judge will determine any prison term after considering the U.S. “Comprehensive investigative oversight to protect investors, the global markets, and the operational integrity of the SEC’s programs, systems, and operations is a top priority for our office.”the charging documents state, Lai Kui Sen is the co-CEO of OST, and Yan Zhao, who goes by the aliases Hank Shi and Hank Shu, among others, is a financial advisor. These
sales generated substantial profits of approximately more than $110 million. Ultimately, the charging documents state, unwitting investors suffered significant losses when, on June 26, 2025, OST lost over $950 million in market capitalization, representing over 94% of its value. Both defendants have been accused with alleged conspiracy to commit securities fraud and wire fraud, securities fraud, and wire fraud. announcement Co-CEO of Chinese Publicly Traded Technology Company and Financial Advisor Indicted for Over $100M Securities Fraud alleged scheme Friday, September 12, 2025 Share Facebook X LinkedIn Email For Immediate Release Office of Public Affairs An indictment was