Alexandria, Va. – The Department of Justice (DOJ) has unsealed an indictment charging Lai Kui Sen, co-CEO of Ostin Technology Group Co. Ltd. (OST), and Yan Zhao, a financial advisor, for orchestrating a $100 million securities fraud scheme targeting American retail investors.
The duo allegedly used OST stock to manipulate the market, siphoning shares through non-bona fide transactions and then dumping them in a coordinated social media campaign that pumped OST’s share price from April to June 2025. The DOJ has already seized nearly $10 million in assets from co-conspirators’ accounts.
“Protecting the integrity of our financial markets remains a top priority,” said Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia. “Anyone who picks the pockets of American investors in violation of the law will be aggressively prosecuted.”
The scheme involved providing a group of fifteen co-conspirators with tens of millions of OST shares, including more than 70 million shares paid for with nothing by the conspirators. The ostensible purpose was to artificially inflate the stock price and trading volume.
“Securities fraud by foreign actors not only exploits fair investment practices but also defrauds American investors and harms U.S. markets,” said Assistant Director Jose A. Perez of the FBI’s Criminal Investigative Division. “Today’s charges demonstrate the FBI’s continued commitment to combatting financial crime.”
The indictment should serve as a stark warning to those seeking to manipulate U.S. markets for personal gain, with the FBI emphasizing its pursuit of such criminals regardless of their location.
RELATED: $1M Pandemic Aid Heist: 2 Consultants Charged
RELATED: Crypto Scammer Eddy Alexandre Pleads Guilty to $240M Fraud Scheme
Related Federal Cases
- Lindsay Kneff Indicted in $255K Real Estate Fraud Scheme · Washington
- DC Man Pleads Guilty to $1.9M Fraud Scheme · Washington
- Brandon J. Black Pleads Guilty in $630K Tax Fraud Scheme · West Virginia
- Morgantown Insurance Agent Robert Altmann Sentenced in Fraud Scheme · West Virginia
- St. Albans Man Pleads Guilty to Pain Pill Fraud Scheme · West Virginia
Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|Public Corruption|White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News