SEC Charges Man With Running Miami-Based Real Estate Ponzi Scheme Targeted at Chinese-American Investors
On September 29th, 2023, the Securities and Exchange Commission (SEC) announced securities fraud charges against Bin Hao. Mr. Hao owned and controlled Qidian LLC. The SEC alleges that he fraudulently raised more than $10 million from at least 60 different investors. Mr. Hao reportedly targeted Chinese-American investors to carry out a Miami-based real estate Ponzi scheme. Here, our Florida Ponzi scheme investment fraud lawyer provides an in depth overview of the allegations raised in federal court.
Allegations: Miami Real Estate Used to Carry Out Ponzi Scheme
The SEC filed a securities fraud complaint in the United States District Court for the Southern District of Florida. The complaints names Bin Hao, a resident of Virginia, as well as Qidian LLC, a Miami-based real estate company that Mr. Hao owned and controlled. The SEC alleges that Mr. Hao carried out a real estate Ponzi scheme through the company between 2017 and 2020.
Investors from more than a dozen U.S. states were offered promissory notes touting high rates of return on Miami real estate. However, by 2019, the company (Qidian LLC) has already stopped making the promised interest payments. The business was in deep financial trouble and the funds of new investors were being used to pay off the original investors in a Ponzi-like manner. In total, the SEC alleges that the scheme took in at least $10.3 million. The SEC alleges that Mr. Hao siphoned off nearly $800,000 in investor funds.
Affinity Schemes are Often Used to Carry Out Investment Fraud
The SEC contends that Mr. Hao, a Chinese-American, targeted Chinese American investors to carry out the fraud. Often, this type of investment fraud is referred to as an affinity scheme. Affinity schemes exploit trust within groups sharing common interests or backgrounds, making them potent tools for investment fraud. Perpetrators, often insiders or members of the targeted community, exploit this shared bond to promote dubious investments. They bank on the notion that members within these close-knit groups are less likely to question or scrutinize the offered opportunity. As
SEC Seeking All Available Penalties Against Bin Hao and Qidian LLC
As part of its civil complaint, the SEC is seeking all available remedies. To start, the agency wants the federal court in South Florida to make determinations that Bin Hao violated securities law. Additionally, the SEC is seeking an officer and director bar against Mr. Hao. Finally, the SEC wants the disgorgement of ill-gotten gains, the payment of financial restitution, and civil fines.
Contact Our Florida Ponzi Scheme Investment Fraud Attorney Today
At Carlson & Associates, P.A., our Florida securities fraud lawyer has the skills and experience to take on real estate Ponzi scheme cases. If you suffered investment losses in any type of Ponzi scheme, we are here as a legal resource. Contact us today to set up your completely private, no obligation consultation. Our firm represents investors in Ponzi scheme cases throughout Florida.
Source:
sec.gov/litigation/litreleases/lr-25867