SEC Files Fraud Charges Against Co-Founder of IIG

The Securities and Exchange Commission today charged David Hu, the co-founder and chief investment officer of International Investment Group LLC (IIG), a former registered investment adviser, with fraud for his role in a $60 million Ponzi-like scheme. The SEC's complaint, filed in federal district court in Manhattan, alleges that, from October 2013, Hu orchestrated multiple frauds on IIG's investment advisory clients. According to the complaint, Hu grossly overvalued the assets in IIG's flagship hedge fund, resulting in the fund paying inflated fees to IIG. In addition, through IIG, Hu allegedly sold at least $60 million in fake trade finance loans to other investors and used the proceeds to pay the redemption requests of earlier investors and other liabilities.