The U.S. Securities and Exchange Commission (SEC) has charged China-based investment advisor QZ Asset Management and its CEO with defrauding investors out of at least $6 million through false claims about investment safety and fake ties with reputable banks and law firms. The lawsuit is interesting because the SEC states that it cannot determine the identity of CEO Blake Yeung Pu Lei, who is allegedly 37 years old, nor does it know his whereabouts.
Short Narrative:
The SEC has filed charges against QZ Asset Management Limited, its U.S.-based holding company QZ Global Limited, and CEO Blake Yeung Pu Lei, accusing them of orchestrating a multi-million dollar fraud. The complaint alleges that QZ Asset falsely promised clients “100% protection” of their investments using proprietary AI technology while falsely claiming partnerships with well-known banks and law firms. They also misled investors by falsely stating that QZ Global was set to list on the Nasdaq Global Select Market. The firm allegedly ceased communications and took down its website, leaving investors without access to their funds.
Key Details:
- Defendants: QZ Asset Management Limited, QZ Global Limited, and Blake Yeung Pu Lei a/k/a Yang Pulei (Yeung).
- Fraud Amount: Over $6 million defrauded from hundreds of investors.
- False Claims: Promised extraordinary returns and fake ties with reputable firms to lure investors. According to the complaint, QZ Asset and Yeung falsely claimed that QZ Asset would use its proprietary AI-based technology to help generate extraordinary weekly returns while promising “100%” protection for client funds and that well-known and reputable financial and legal firms were providing services to the company.
- SEC Action: Charges include violating antifraud provisions and seek to recover ill-gotten gains, impose civil penalties, and enforce permanent injunctive relief.
Actionable Insight:
The SEC highlights the importance of due diligence and warns against relying on false claims of legitimacy, such as unverified partnerships and misleading public offering filings. Crypto and financial service companies must maintain transparency and accurate representations to avoid regulatory scrutiny.
Read More: SEC press release
Whistleblower Request:
If you have information regarding fraudulent activities in the financial sector, don’t hesitate to get in touch with us securely via our whistleblower system, Whistle42. Your anonymity will be protected.
