US Justice Department Charges Chinese Tech Executives with Securities Fraud, Alleging Over $100 Million in Losses for American Investors.

The US Department of Justice has charged two Chinese tech firm executives, Lai Kui Sen and Yan Zhao, with securities fraud for orchestrating a pump and dump scheme involving Ostin Technology Group (OST). The scheme netted them over $100 million, and OST lost $950 million in market valuation. The duo faces charges of wire fraud, securities fraud, and conspiracy to commit both, and could face decades behind bars if convicted.

The U.S. Department of Justice (DOJ) has charged Lai Kui Sen, co-chief executive of Ostin Technology Group (OST), and Yan Zhao, a financial advisor, with orchestrating a $100 million securities fraud scheme involving the Chinese tech firm's stock. The defendants are accused of engaging in a pump and dump scheme, which artificially inflated the stock's price and then sold their shares at a higher price, generating profits for themselves.

According to the DOJ, on April 15, 2025, the defendants sold millions of shares to co-conspirators at a heavily discounted price. They then promoted the stock through social media campaigns and impersonated investment advisers to artificially inflate the stock's price and trading volume. On June 26, 2025, OST's market capitalization dropped by $950 million, or 94%, leading to significant losses for other investors.

"The defendants targeted American retail investors through a predatory pump and dump scheme to take advantage of the artificial inflation of the price of OST shares," said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department's Criminal Division.

The duo faces charges of wire fraud, securities fraud, and conspiracy to commit both. If convicted, they could face decades behind bars.