September 10, 2015

The SEC charged New York Global Group (NYGG) and its CEO, Benjamin Wey, with secretly obtaining control and manipulating the stock of Chinese companies they were purportedly guiding through the process of raising capital and becoming publicly-traded in the United States.  The SEC alleges that Wey and NYGG structured reverse mergers between clients and publicly-traded shell companies to secretly obtain ownership interests in the newly listed companies, which they concealed through a vast network of foreign accounts.  The SEC alleges they generated tens of millions of dollars in illegal profits as they sold the securities into artificially inflated markets.  In addition to Wey and NYGG, Wey’s wife and sister, their Switzerland-based broker, and two attorneys have been charged as well.  SEC

Tagged in: Market Manipulation and Trading Violations, Securities Fraud,