BTG Investigates International Investment Group Ponzi Scheme

The Business Trial Group is investigating an alleged $60 million Ponzi scheme involving International Investment Group LLC, a former registered investment advisor.

Previously, in late 2019, the Securities and Exchange Commission charged International Investment Group with fraud and revoked its registration.  In March 2020, the SEC obtained a final consent judgment requiring International Investment Group to pay over $35 million in disgorgement and interest.

More recently, on July 17, 2020, the SEC charged David Hu, who co-founded and served as chief investment officer of International Investment Group (IIG), with fraud for his role in the scheme.

The SEC alleges that, dating back to October 2013, Hu coordinated several frauds on IIG’s investment advisory clients. The SEC alleges that Hu wildly exaggerated the assets in IIG’s hedge fund, which caused the fund to pay inflated fees to IIG.   The SEC further claims that Hu caused IIG to sell $60 million in fake loans to investors, and used the sales proceeds to pay earlier investors’ redemption requests. According to the SEC, Hu caused IIG to provide phony loan documentation, including fake promissory notes and a bogus credit agreement.

Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office, stated: “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.”

The SEC has charged Hu with violating the federal securities laws’ antifraud provisions and seeks injunctive relief, disgorgement, and civil penalties.

The U.S. Attorney’s Office for the Southern District of New York also announced criminal charges against Hu on July 17.

If you have suffered losses relating to IIG’s alleged fraud, we are here to help.  Contact us at 800-816-1031 today to speak with an experienced securities attorney at Morgan & Morgan’s Business Trial Group.

The Business Trial Group at Morgan & Morgan helps investors recover their losses on a contingency basis. We are only paid if we successfully recover money for you. We have helped investors recover tens of millions of dollars of investment losses.

The Business Trial Group is part of the largest contingency law firm in the nation, with more than 700 lawyers and offices nationwide.