David Hu Arrested and Charged with Running a Ponzi Scheme

Posted on July 20th, 2020 at 3:16 PM
David Hu Arrested and Charged with Running a Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Co-founder and managing partner of International Investment Group, David Hu, was arrested and charged with running Ponzi scheme of more than $100 million. Federal authorities accused Hu of overvaluing loans and covering up the scheme with falsified documents and fake entities. According to federal authorities, the scheme has gone on for more than 10 years.  

According to federal prosecutors, the fraudulent investments were mainly marketed to hedge funds, insurers and pension funds.  Federal prosecutors alleged that Hu and an unnamed co-conspirator also established a collateralized loan obligation trust in 2014, and used that trust to hide losses in one of the firm’s funds and generate liquidity to re-pay investors. 

In March 2020, International Investment Group agreed to pay $35 million to the U.S. Securities and Exchange Commission (“SEC”) to settle fraud charges.  According to the SEC, the firm has thus far paid only $400,000.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

 

Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, james eccleston, david hu, ponzi scheme, international investment group

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