The U.S. Securities & Exchange Commission has filed charges against New Jersey investment adviser David Yow Shang Chiueh and his firm, Upright Financial Corp., alleging they continued misconduct at the Upright Growth Fund despite a 2021 SEC settlement and order to stop similar conduct. The complaint alleges the defendants violated the fund’s concentration limits and misled investors and the fund’s board, resulting in approximately USD 1.6 million in losses to the fund and its retail investors. According to the SEC, Chiueh and Upright invested more than 25 percent of the fund’s assets in a single company over multiple years and, between at least 24 November 2021 and 23 June 2024, made misrepresentations about compliance with the fund’s 25 percent industry concentration limit. The complaint also alleges additional governance-related violations during the same period, including operating the fund’s board without the required number of independent trustees, misrepresenting a trustee’s independence in filings, withholding key information from the board, and hiring an accountant for the fund without the required board vote. The SEC’s complaint alleges violations of antifraud and other provisions of the federal securities laws, including the Investment Advisers Act and the Investment Company Act, and seeks permanent injunctive relief, disgorgement, and civil penalties.
U.S. Securities & Exchange Commission 2025-03-17
U.S. Securities & Exchange Commission files fraud charges against Upright Financial and David Chiueh over 25 percent concentration breaches causing USD 1.6 million losses
The U.S. SEC charged New Jersey adviser David Yow Shang Chiueh and Upright Financial Corp. with violating federal securities laws, including the Investment Advisers Act and the Investment Company Act. Allegations include breaching fund concentration limits, misleading investors, and governance violations, causing about USD 1.6 million in losses. The SEC seeks permanent injunctive relief, disgorgement, and civil penalties.