SEC Charges Ideanomics and Three Senior Executives with Accounting and Disclosure Fraud

The Securities and Exchange Commission today announced settled fraud charges against Ideanomics, Inc., formerly known as Seven Stars Cloud Group, Inc., and its former Chairman and CEO, Zheng (Bruno) Wu, for misleading the public about the company’s financial performance between 2017 and 2019. The SEC also announced settled charges against Ideanomics’ current CEO, Alfred Poor, and former CFO, Federico Tovar, for their roles in the scheme. The SEC’s orders allege that, in mid-November 2017, Ideanomics and Wu reported 2017 revenue guidance of $300 million, despite numerous known issues indicating that the company would miss this guidance by a wide margin.