The Securities and Exchange Commission has filed charges against 38 entities suspected of submitting fraudulent filings to pose as legitimate US investment advisers. The scheme is linked to Guanhua Su, a Hong Kong resident accused of creating at least ten shell companies between February 2023 and March 2025 as part of a sprawling fraud operation. One of the most visible consequences was an approximately 88% stock price collapse on April 17, 2024, resulting from a pump-and-dump scheme that targeted retail investors. In April 2026, default judgments were entered against Supreme Power Capital Management and AI Financial Education Foundation, each ordered to pay $1.2 million in civil penalties. The US Department of Justice is running a parallel criminal case for securities fraud conspiracy against Su, who faces potential prison time if convicted.
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