The U.S. Division of Justice (DOJ) is charging two Chinese language tech agency executives with crimes linked to a securities fraud case.
In a brand fresh press unlock, the DOJ is alleging that Lai Kui Sen and Yan Zhao masterminded a plot to defraud American investors the exercise of the stock of Ostin Technology Community (OST).
In response to the authorities, Sen, the agency’s co-chief executive, and Zhao, a monetary guide, orchestrated a pump and dump plot appealing OST, netting them over $100 million.
The indictment alleges that on April 15, 2025, the defendants sold millions of shares to co-conspirators at a closely discounted tag, then started to artificially inflate the price and trading quantity of the stock. Then they sold the shares at a increased tag, netting them millions.
In response to the clicking unlock, on June 26th, OST lost a staggering $950 million in market valuation, or 94% of its tag.
As acknowledged by U.S. Lawyer Erik S. Siebert for the Jap District of Virginia,
“Protecting the integrity of our monetary markets remains a top precedence. Someone who picks the pockets of American investors in violation of the law will be aggressively prosecuted.
The Division of Justice has established whistleblower applications to support corporations and people to approach forward with nicely timed info relating to misconduct and prison habits. Failing to form so invitations basic penalties.”
The duo faces charges of wire fraud, securities fraud, and conspiracy to commit both. If convicted, they face a protracted time in the support of bars.
