David Hu, Co-Founder of International Investment Group, Charged in Alleged Ponzi Scheme

The SEC charged Hu with fraud and other violations in connection with the alleged $60M Ponzi Scheme 

The Sonn Law Group is investigating allegations that David Hu committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

david-hu-charged-in-alleged-ponzi-schemeOn July 17, 2020, the SEC charged the co-founder and chief investment officer of International Investment Group (“IIG”), David Hu, with fraud for his role in an alleged $60 million Ponzi scheme. The SEC is seeking permanent injunctive relief, disgorgement, and civil penalties.

The SEC’s complaint alleges that from October 2013 until 2019, Hu, “orchestrated multiple frauds on IIG’s investment advisory clients.” Hu did so by overvaluing the assets in one of IIG’s funds, resulting in the fund paying inflated fees. 

The complaint also alleges that Hu sold at least $60 million in fake loans to IIG investors and used the proceeds to pay redemption requests made by earlier investors in a Ponzi-like fashion. Hu allegedly deceived clients into purchasing the fake loans by directing other IIG officials to give the clients fictitious loan documentation, including promissory notes and forged credit agreements. 

“Hu’s deception caused substantial losses to a retail mutual fund, and other funds IIG advised,” said Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office. “The SEC remains committed to holding accountable individual wrongdoers who seek to take advantage of investors for personal gain, including when they employ elaborate means to cover up their fraud.”

In a parallel action, Hu is facing criminal charges brought by the U.S. Attorney’s Office for the Southern District of New York. Hu was charged with investment adviser fraud, securities fraud, and wire fraud. 

Earlier in 2019, IIG had its registration revoked following fraud allegations.

The Sonn Law Group is currently investigating allegations that David Hu committed fraud. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.