Hu violated certain sections of the Investment Advisers Act of 1940, the Securities Exchange Act of 1934, and the Securities Act of 1933, according to the SEC.
In a statement, SEC New York Regional Office Senior Associate Director Sanjay Wadhwa, said, “As alleged, Hu’s deception caused substantial losses to a retail mutual fund, and other funds IIG advised.”
“The SEC remains committed to holding accountable individual wrongdoers who seek to take advantage of investors for personal gain, including when they employ elaborate means to cover up their fraud,” added Wadhwa.
The Commission is asking the court to issue a final judgment ordering David Hu to disgorge his ill-gotten gains with prejudgment interest and to pay civil monetary penalties.
Last year, the SEC revoked the registration of IIG for committing securities fraud related to the $60 million fake loan assets sold by Hu to investors.
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