A Hong Kong resident has been indicted by a federal grand jury in the District of Columbia for his alleged involvement in a conspiracy to submit false investment adviser forms to the U.S. Securities and Exchange Commission (SEC). The indictment alleges that Guanhua Su, also known as “Michael Su,” along with co-conspirators, created at least 10 shell business entities and filed deceptive forms with the SEC to make these entities appear as legitimate financial advisers.
According to prosecutors, at least two of these sham entities were used to lure retail investors via social media and WhatsApp into buying shares of Chinese companies listed on NASDAQ. The indictment states that Su served as managing director and marketing director of Rhino Consulting Business Service Ltd, a financial services firm based in Hong Kong. Between February 2023 and March 2025, Su and others allegedly submitted fraudulent filings on behalf of companies such as Bluesky Eagle Capital Management LTD and Wisdom Capital Management Group LTD. These filings included false information about company leadership, business locations, public status, and disclosures related to private funds.
The charges further allege that in April 2024, Bluesky Eagle and Wisdom Capital were used by co-conspirators to persuade investors to purchase stock in a Cayman Islands-based company operating in China. Investors were reportedly promised returns between 300% and 500% through WhatsApp messages from individuals posing as financial advisers linked to the sham entities. They were also told they would be fully compensated for any losses. As investors bought shares promoted by these accounts, foreign brokerage accounts sold the same stock for proceeds up to $211 million. On April 17, 2024, the company’s share price dropped by about 88%, causing substantial losses for investors.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division commented: “Today’s indictment charges the defendant for his alleged role in a complex securities fraud scheme that caused hundreds of millions of dollars in investor losses. The Criminal Division is fully committed to stopping foreign actors who victimize American retail investors. Under my leadership, the Criminal Division will aggressively investigate and prosecute criminals who steal the hard-earned savings of U.S. citizens through fraud and deceit.”
SEC Inspector General Kevin B. Muhlendorf added: “The investing public relies on the accuracy and integrity of materials filed with the SEC. The SEC-OIG will tirelessly investigate domestic and foreign actors who seek to abuse the SEC’s processes for malicious purposes.”
On November 13, civil actions were initiated by the SEC against several entities connected with Su’s alleged activities in courts located in New York, Colorado, and Washington D.C.
Su faces charges including conspiracy to commit securities fraud, making material misstatements in reports filed with the SEC, and making false statements. Each count carries a maximum penalty of five years’ imprisonment if convicted.
The investigation was conducted by the Office of Inspector General at the SEC with support from FINRA’s Surveillance and Market Intelligence – Market Abuse Group. Trial Attorney Matthew Reilly from the Justice Department’s Fraud Section is prosecuting.
Authorities emphasized that an indictment is only an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
