DOJ Charges 2 Chinese Men in $950 Million Pump-and-Dump Scheme

The case highlights a risky business structure that has underpinned Chinese firms listing on the U.S. stock market.

Stock market numbers are displayed on the floor of the New York Stock Exchange during morning trading in New York City, on June 23, 2025. Michael M. Santiago/Getty Images

The Justice Department (DOJ) has charged two Chinese men with inflating the share price of a Chinese company and inflicting a $950 million loss on U.S. investors.

The indictment, unsealed on Sept. 12, accuses Zhao Yan, a self-described financial adviser, and Sen Lai Kui, former co-CEO of Ostin Technology, of running a coordinated pump-and-dump operation. Ostin, which claimed to manufacture display modules for electronic devices, was publicly traded on the Nasdaq stock market.

Alleged Pump-and-Dump Scheme

According to prosecutors, beginning in April 2025, Zhao and Sen engineered fraudulent securities offerings that placed the majority of Ostin’s shares into the hands of their co-conspirators. At the same time, the pair allegedly launched an aggressive campaign to artificially inflate the price and trading volume of Ostin stock through social media and messaging apps, with some promotions impersonating licensed investment advisers and financial professionals to lure in retail investors.