The Managing Partner and Chief Investment Officer (CIO) of International Investment Group (IIG) pleaded guilty to defrauding clients and investors in the more than $100 million Ponzi-like scheme.
IIG is an investment adviser registered with the Securities and Exchange Commission (SEC). The firm provides investment management and advisory services. It is based in New York. Based on its report with the SEC in March 2018, IIG approximately $373 million in assets under management
According to Audrey Strauss, the U.S. Attorney for the Southern District of New York, IIG Managing Partner and CIO David Hu admitted that he committed investment adviser fraud, securities fraud, and wire fraud.
In his guilty plea, Mr. Hu admitted to U.S. District Judge Alvin Hellerstein that he engaged in fraudulent activities for more than ten years while operating the Ponzi-like scheme to steal money from IIG investment advisory fund clients and investors.
“Today, David Hu admitted to shirking his fiduciary responsibilities and defrauding IIG funds and investors for more than a decade, causing millions of dollars of losses. 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,” according to U.S. Attorney Strauss.
