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B. G., Opalesque Geneva: The Securities and Exchange Commission on Friday charged a former registered investment adviser with fraud for his role in a $60 million Ponzi-like scheme that had been going on for years.
In October 2019, The SEC filed a complaint in Manhattan alleging that, from October 2013, David Hu, the co-founder and CIO of New York-based International Investment Group LLC (IIG), had orchestrated multiple frauds on IIG's investment advisory clients. It said Hu had grossly overvalued the assets in IIG's flagship hedge fund, resulting in the fund paying inflated fees to IIG.
In addition, through IIG, Hu sold at least $60 million in fake trade finance loans to other investors and used the proceeds to pay the redemption requests of earlier investors and other liabilities. Hud deceived IIG clients into purchasing these loans by directing others at IIG to create and provide to the clients fake loan documentation to substantiate the non-existent loans, including fake promissory notes and a forged credit agreement.
The complaint charges Hu with violating the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, disgorgement, and civil penalties.
In November 2019, the SEC charged IIG with fraud and revoked IIG's registration as an investment adviser. On March 30, 2020, the SEC obtained a final judgment on the consent that enj...................... To view our full article Click here
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