Khanna, Moolenaar Investigate U.S. Underwriters That Helped Chinese Businesses Rip Off Americans

WASHINGTON – Ranking Member Ro Khanna (D-CA) and Chairman John Moolenaar (R-MI) of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party sent letters to three U.S. underwriters – D. Boral Capital, Dominari Securities, and Revere Securities – demanding information on their underwriting of initial public offerings (IPOs) of Chinese companies that ultimately defrauded Americans through "ramp-and-dump" stock schemes.

“The Chinese Communist Party (CCP) is enabling a systematic assault on American investors through scam centers operated by organized crime networks in the People's Republic of China (PRC) and CCP-aligned nations. These scam centers defraud American households through coordinated “ramp-and-dump” stock manipulation schemes involving Chinese shell companies listed on American exchanges, which your firm appears to facilitate. Bloomberg News estimates that $16 billion in American wealth has been extracted through these schemes since 2023, with 25% of small-tier Chinese IPOs showing evidence of manipulation," the lawmakers write in the letters. "The scale of this CCP-enabled fraud is staggering. The Federal Bureau of Investigation (FBI) has documented a 300% increase in complaints related to these Chinese stock manipulation schemes."

The letters ask the three underwriters to provide extensive documentation, including communications, funding sources, trading records, and due diligence policies.

Read the letter to D. Boral Capital here.

Read the letter to Dominari Securities here.

Read the letter to Revere Securities here.

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