TLDR:

The CEO of Future Fintech, Shanchun Huang, has been charged with fraud by the Securities and Exchange Commission (SEC) for failing to disclose his ownership and transactions of Future Fintech stock. Huang allegedly used an offshore account to buy and trade Future Fintech stock, and placed multiple orders to buy stock in a short period of time to drive up prices. Upon becoming CEO, Huang failed to file change of ownership forms. The SEC states that timely disclosure of insider stock transactions is essential for the fair operation of securities markets.

• The CEO of Future Fintech, Shanchun Huang, has been charged with fraud by the SEC.
• Huang allegedly failed to disclose his ownership and transactions of Future Fintech stock.
• He allegedly used an offshore account to buy and trade Future Fintech stock and placed multiple orders to drive up prices.
• Huang did not file change of ownership forms until after he became CEO.
• The SEC states that timely disclosure of insider stock transactions is essential for fair securities markets.

Shanchun Huang, CEO of Future Fintech, has been charged with fraud by the Securities and Exchange Commission (SEC) for failing to disclose his ownership and transactions of Future Fintech stock. According to the SEC, in 2019 or 2020, Huang used an offshore account to buy and trade Future Fintech stock in high volumes over a two-month period. He allegedly placed multiple orders to buy stock within a short period of time in order to drive up prices.

The SEC states that on February 6, 2020, Huang’s trading volume accounted for 60% of the trading volume and he placed numerous buy orders within nine minutes, causing the stock price to rise from $0.89 to $1.05. However, when Huang became CEO, he failed to file change of ownership forms on his holdings of the company stock until March 2021. During this time, he allegedly claimed that he no longer owned any stock.

Sheldon L. Pollock, associate regional director of the SEC’s New York regional office, emphasized the importance of timely disclosure of insider stock transactions, stating, “Timely disclosure of insider stock transactions is a fundamental component of the federal securities laws that ensures the fair operation of our securities markets. CEOs should assume that the use of an offshore account will not prevent the staff of the SEC from identifying manipulative trading.”