In April 2021, Silver also pleaded guilty to investment adviser fraud, securities fraud, and wire fraud offenses. He is awaiting sentencing.
In a statement, U.S. Attorney Damian Williams said, “David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. Hu’s lies caused millions of dollars of losses. Hu mismarked millions of dollars of loan assets, falsified paperwork to create fake loans, sold overvalued and fake loans, used the proceeds from those sales to pay off earlier investors, and falsified paperwork to deceive auditors and avoid scrutiny. Today’s sentence sends the message that brazen fraud does not pay and will be appropriately punished.”
In July 2020, the Securities and Exchange Commission (SEC) also filed fraud charges against Hu. The securities regulator revoked IIG’s registration as an investment adviser in November 2019.
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