US lawmakers have launched an investigation into a number of Wall Avenue underwriters, together with Dominari Securities, whose father or mother firm is linked to the Trump household, over their position in bringing Chinese language firms to US inventory markets that had 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 a few US firms — D. Boral Capital, Dominari Securities and Revere Securities — looking for details about Chinese language preliminary public choices (IPOs) they helped underwrite.
“These rip-off facilities defraud American households via 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 via coordinated buying and selling and promotion, then dumped shares on retail traders earlier than the shares crashed. In some instances, dozens of accounts allegedly positioned practically an identical purchase orders above the IPO value, briefly pushing valuations greater earlier than insiders offered their stakes.
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Chinese language inventory schemes drain billions from traders
The lawmakers cited estimates that round $16 billion in US investor wealth has been drained since 2023 via 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 information, funding sources and due diligence insurance policies associated to Chinese language IPOs.
The committee mentioned 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. Positioned 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 hundreds of thousands of {dollars} in funding from Donald Trump Jr.
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