A Hong Kong entrepreneur named Guanhua “Michael” Su has been indicted in America for allegedly submitting fake investment advisor forms to the SEC in a scheme involving more than 10 shell companies. Authorities say Su and his accomplice created fake financial consulting firms to appear legitimate, then used WhatsApp and social media to lure investors into buying shares of a Chinese company listed on NASDAQ.
Some victims were promised profits of up to 500%, while this group secretly sold shares through foreign brokerage accounts and raked in about $211 million. The scheme collapsed when the promoted company's stock plummeted 88% in April 2024, causing significant losses for investors. Su, formerly a director at Rhino Consulting in Hong Kong, now faces charges related to securities fraud and false reporting to the SEC, with a maximum penalty of 5 years for each offense.
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