Businessman Indicted, Filing False, Investment Adviser Forms — Hong Kong Businessman Indicted for Role in Filing False SEC Investment Adviser Forms on behalf of Sham Entities Used in Ramp-and-Dump Scheme | United States Justice Department.
announcement Hong Kong Businessman Indicted for Role in Filing False SEC Investment Adviser Forms on behalf of Sham Entities Used in Ramp-and-Dump Scheme Friday, November 14, 2025 Share Facebook X LinkedIn Email For Immediate Release Office of Public Affairs A federal grand jury in the District of Columbia returned an indictment yesterday charging a Hong Kong man for his role in a conspiracy to file false and deceptive investment adviser forms with the U.S. Securities and Exchange Commission (SEC) for at least 10 shell business entities that he and co-conspirators created. The false
forms gave the impression that the entities were legitimate financial advisers, though they were sham entities. At least two of these false entities were then used to induce retail investors through social media and WhatsApp chats to purchase the stock of Chinese companies listed on NASDAQ. “Today’s indictment charges the defendant for his alleged role in a complex securities fraud scheme that caused hundreds of millions of dollars in investor losses,” said Acting Assistant Attorney General Matthew R. The SEC previously filed a civil action against Wisdom Capital in the District of Columbia.Su has been
charged with conspiracy to commit securities fraud, making material misstatements in a report filed with the SEC, and false statements. prosecutors further allege that as investors were told to buy stock in the public company promoted by WhatsApp accounts associated with the sham entities, foreign-based brokerage accounts sold the company’s stock for gross proceeds of as much as $211 million. citizens through fraud and deceit.”“The investing public relies on the accuracy and integrity of materials filed with the SEC,” said SEC Inspector General (SEC-OIG) Kevin B. “The SEC-OIG will tirelessly investigate domestic and foreign actors who