A managing partner and chief investment officer of New York-based trade finance lender International Investment Group (IIG) has pleaded guilty for his part in a Ponzi-like scheme to defraud funds and investors. According to a release from the US Department of Justice (DoJ), IIG co-founder David Hu accepted that over the course of more than a decade, he defrauded IIG funds and investors out of more than US$100mn by, “among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds,” which were used to pay off earlier investors. “Hu mismarked millions of dollars of loan assets, falsified paperwork to create fake loans, sold overvalued and fake loans and used the proceeds from those sales to pay off earlier investors, and falsified paperwork to deceive auditors and avoid scrutiny. He now faces a serious term of imprisonment,” says Audrey Strauss, United States attorney for the southern district of New York. The court case follows a decision by the US Securities and Exchange Commission (SEC) to revoke IIG’s license in late 2019, following what the regulator called at the time “a string of frauds”. As investment advisor to the Trade Opportunities Fund (TOF), the Global Trade Finance Fund (GTFF), and the… continue reading
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Source: CTRM Center