ChainThink reports that the U.S. House of Representatives has launched an investigation into several Wall Street underwriters, including Dominari Securities, which has ties to the Trump family, for allegedly assisting multiple Chinese companies in listing on U.S. exchanges, after their stocks were subsequently accused of market manipulation.
On Monday, Committee Chair John Moolenaar and Ranking Democrat Ro Khanna sent inquiry letters to three agencies requesting information regarding their underwriting of Chinese companies' IPOs.
The three companies are D. Boral Capital, Dominari Securities, and Revere Securities.
The lawmakers noted in their letter that these companies, after going public, were used for "ramp-and-dump" price manipulation: related Chinese shell companies coordinated trading and market promotion to inflate stock prices, then sold large volumes of shares to retail investors at peak levels, causing prices to plummet.
Some cases show that a large number of accounts placed nearly identical buy orders above the IPO price, briefly inflating the valuation before insiders quickly sold off their holdings.