The SEC today announced it had stopped an alleged scam committed by an Illinois resident who raised $145 million dollars plus $11 million in administration fees from hundreds of wealthy Chinese investors to invest in a hotel and conference center as part of an investor/immigrant pathway program to obtain U.S. citizenship.
While the $11 million in fees are likely unrecoverable, the SEC took swift action to freeze $145 million in cash, preserving nearly all of the duped Chinese investors’ assets.
Comment: Can China please now reciprocate and take similar legal action to freeze the assets of dozens of Chinese fraudsters such as Ming Zhao who deceived U.S. investors?
Great post.
Martin Garbus
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212.561.3625
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And the founder of XING/QXM.
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It is highly unlikely that the Chinese state will reciprocate. Instead of protecting the Chinese, the SEC should protect the Americans. The American government should reciprocate the actions of the Chinese state and protect the fraudsters!