US lawmakers have launched an investigation into a number of Wall Road underwriters, together with Dominari Securities, whose guardian firm is linked to the Trump household, over their function in bringing Chinese language firms to US inventory markets that have been later tied to inventory manipulation schemes.
On Monday, the Home of Representatives Choose Committee on China, chaired by Consultant John Moolenaar with Rep. Ro Khanna as rating member, despatched letters to 3 US firms — D. Boral Capital, Dominari Securities and Revere Securities — searching for details about Chinese language preliminary public choices (IPOs) they helped underwrite.
“These rip-off facilities defraud American households by means of coordinated “ramp-and-dump” inventory manipulation schemes involving Chinese language shell firms listed on American exchanges, which your agency seems to facilitate,” the lawmakers wrote.
The Chinese language firms allegedly used US IPOs to inflate their share costs by means of coordinated buying and selling and promotion, then dumped shares on retail buyers earlier than the shares crashed. In some instances, dozens of accounts allegedly positioned practically similar purchase orders above the IPO worth, briefly pushing valuations greater earlier than insiders bought their stakes.
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Chinese language inventory schemes drain billions from buyers
The lawmakers cited estimates that round $16 billion in US investor wealth has been drained since 2023 by means of such schemes. In addition they pointed to FBI information exhibiting a 300% enhance in complaints tied to Chinese language inventory manipulation instances.
The inquiry seeks documentation from the underwriters, together with communications, buying and selling data, funding sources and due diligence insurance policies associated to Chinese language IPOs.
The committee stated it’s inspecting whether or not US monetary intermediaries might have inadvertently helped facilitate manipulation schemes tied to Chinese language issuers. The corporations have been requested to submit the requested paperwork by Friday.
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Dominari attracts scrutiny in Chinese language inventory probe
One of many brokerage corporations named within the probe is Dominari, which has ties to the Trump household. Situated in New York’s Trump Tower, it’s owned by Dominari Holdings, the place Eric Trump, son of US President Donald Trump, is the fourth-largest shareholder. Eric Trump and Donald Trump Jr. joined the corporate’s advisory board in February 2025.
Final 12 months, Dominari helped facilitate fundraising for Thumzup, a public firm that adopted a Bitcoin (BTC) treasury technique and likewise attracted tens of millions of {dollars} in funding from Donald Trump Jr.
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