The U.S. Department of Justice announced an indictment in the District of Columbia charging Guanhua Su, a Hong Kong-based businessman, with conspiring to file false and deceptive investment adviser forms with the U.S. Securities and Exchange Commission for at least 10 shell entities allegedly used to mislead retail investors. According to the indictment, Su, a managing and marketing director at Rhino Consulting Business Service Ltd, helped create shell entities and file fraudulent SEC adviser forms between February 2023 and March 2025, including alleged misstatements about Bluesky Eagle Capital Management LTD and Wisdom Capital Management Group LTD. The sham entities were then allegedly used in April 2024 to promote a NASDAQ-listed company in WhatsApp chats with promised returns of 300% to 500%, while foreign-based brokerage accounts sold shares for gross proceeds of up to USD 211 million before the stock price fell about 88% on April 17, 2024. Su is charged with conspiracy to commit securities fraud, making material misstatements in a report filed with the SEC, and false statements, each carrying a maximum penalty of five years’ imprisonment; the SEC filed related civil actions on Nov. 13 against several of the entities referenced in the case.
U.S. Department of Justice 2025-11-14
U.S. Department of Justice indicts Hong Kong businessman for allegedly filing false SEC investment adviser forms tied to a ramp-and-dump scheme
The U.S. Department of Justice indicted Guanhua Su, a Hong Kong businessman, for conspiring to file false investment adviser forms with the U.S. Securities and Exchange Commission (SEC) for shell entities used to mislead investors. Su allegedly promoted a NASDAQ-listed company with exaggerated returns, resulting in significant stock sales before a price drop. The SEC has filed related civil actions against several entities involved.