Bloomberg Compliance: Annual Sign-Off, Alleged Breaches, and Disciplinary Actions

Bloomberg's Standards of Business Conduct (SoBC) compliance program requires employees to report any instances of non-compliance and managers to take disciplinary action. Allegations are investigated internally, and strong action is taken where necessary. In 2024, 100% of Group company employees completed the annual SoBC sign-off, and 512 out of 869 contacts made via the SoBC Portal were assessed as alleged SoBC breaches. No wrongdoing was found in 163 cases, while 164 cases were established as breaches and resulted in disciplinary action.

Two Chinese nationals, Lai Kui Sen and Yan Zhao, have been charged in a complex securities fraud scheme involving the manipulation of Ostin Technology Group Co. Ltd. (OST) stock, according to an indictment unsealed on September 15 by the U.S. Attorney's Office for the Eastern District of Virginia Firm's alleged $100M stock scheme could mean jail for 2 Chinese execs^[1]. The scheme allegedly targeted American retail investors, resulting in significant financial losses.

The indictment alleges that Sen and Zhao, along with at least 15 co-conspirators, orchestrated a "pump-and-dump" scheme by artificially inflating OST's share price. Ostin Technology Group Co. Ltd., listed on NASDAQ, is a publicly-traded company based in the Cayman Islands with principal operations in China Firm's alleged $100M stock scheme could mean jail for 2 Chinese execs^[1].

The scheme involved two specific transactions where Sen and Zhao allegedly siphoned OST shares in non-bona fide securities transactions and dumped their stock amidst a coordinated social media campaign. According to federal officials, in at least one transaction, the two co-conspirators paid nothing for over 70 million OST stock shares Firm's alleged $100M stock scheme could mean jail for 2 Chinese execs^[1].

On April 15, select investors received a first dump of heavily discounted OST shares, initiating a fraudulent campaign to artificially inflate the stock's price and trading volume. The scheme culminated in a significant market capitalization loss of over $950 million for OST on June 26, representing over 94% of its value Firm's alleged $100M stock scheme could mean jail for 2 Chinese execs^[1].

The U.S. Department of Justice (DOJ) has seized nearly $10 million in assets from accounts of the two co-conspirators. The Securities and Exchange Commission's (SEC) Office of Inspector General has pledged to "relentlessly" pursue investigations into individuals submitting false filings with the SEC Firm's alleged $100M stock scheme could mean jail for 2 Chinese execs^[1].

The two Chinese nationals face a maximum penalty of 20 to 25 years for some individual charges, with sentencing determined by a federal judge based on U.S. guidelines Firm's alleged $100M stock scheme could mean jail for 2 Chinese execs^[1].