⚖️ SEC Charges Investment Adviser with Fraud
The SEC is cracking down hard on a New Jersey investment adviser and his firm for fraudulent activities, causing $1.6 million in losses. The saga continues as the SEC seeks justice for the affected investors.
Key Points
- •💼 Who: David Yow Shang Chiueh and Upright Financial Corp.
- •📉 Losses: $1.6 million in investor losses
- •📅 Timeline: Continued violations from November 2021 to June 2024
- •🕵️♂️ Misconduct: Over-concentration in a single stock, misleading investors and the board
- •⚖️ Legal Action: SEC seeks permanent injunctions, return of gains, and civil penalties
🚨 The Fraudulent Moves
David Yow Shang Chiueh and his firm, Upright Financial Corp., are in hot water. The SEC has charged them for going rogue and sinking over 25% of the Upright Growth Fund’s assets into a single company. The result? A whopping $1.6 million in investor losses. It's a classic case of putting too many eggs in one basket, and the basket broke.
🕵️♂️ The Continued Deception
Despite a settlement in November 2021 where Chiueh and his firm promised to play by the rules, they allegedly continued their shady practices. From November 2021 to June 2024, they violated the 25% industry concentration limit and lied about it. The SEC claims that this deceitful behavior led to significant financial harm.
💼 Boardroom Shenanigans
But the drama doesn’t end there. Chiueh is also accused of running a sketchy boardroom operation. The SEC’s complaint states that he operated the fund’s board without the required number of independent trustees and misrepresented the independence of one trustee. To top it off, they hired an accountant without the necessary board vote. Talk about a governance nightmare!
“As alleged, the defendants not only ran the fund contrary to its fundamental investment policies, but they actively misled investors and the fund’s board about their conduct,” said Corey Schuster, Chief of the Division of Enforcement’s Asset Management Unit.