A Hong Kong businessman has been indicted for his alleged role in a scheme that deceived investors into buying Nasdaq-listed shares of a Chinese company, causing them to suffer significant losses when the stock later collapsed in a sudden selloff, the Department of Justice announced on Nov. 14.
Su Guanhua, 37, who uses the alias “Michael Su,” was the managing director and marketing director of a Hong Kong-based financial service company called Rhino Consulting Business Service. He is accused of filing fraudulent documents with the U.S. Securities and Exchange Commission (SEC) to run what is called a “ramp-and-dump” scheme, a form of stock manipulation in which perpetrators inflate a stock’s price before selling their artificially boosted shares for a profit, leaving unsuspecting investors with steep losses.
