Odaily Planet Daily 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, due to their role in assisting multiple Chinese companies with listings in the United States, following allegations of market manipulation involving the resulting stocks. Committee Chairman John Moolenaar and top Democrat Ro Khanna sent inquiry letters on Monday to the three firms, requesting information regarding their underwriting of Chinese IPOs. The three companies are D. Boral Capital, Dominari Securities, and Revere Securities. In the letters, lawmakers stated that these companies’ listings were subsequently used for “ramp-and-dump” market manipulation: related Chinese shell companies coordinated trading and promotional activities to inflate stock prices, then sold large volumes of shares to retail investors at peak levels, causing sharp price declines. In some cases, numerous accounts placed nearly identical buy orders above the IPO price, briefly inflating valuations before insiders quickly cashed out. (Cointelegraph)
U.S. Lawmakers Investigate Trump-Linked Broker Over Alleged IPO Stock Manipulation
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Summary
U.S. House lawmakers have launched an inquiry into Trump-linked broker Dominari Securities and other underwriters over alleged manipulation of IPO stocks tied to Chinese companies. Led by John Moolenaar and Ro Khanna, the investigation targets D. Boral Capital, Dominari, and Revere over suspected “ramp-and-dump” schemes. These schemes allegedly used shell companies to inflate stock prices before selling shares to retail investors. Lawmakers are citing concerns related to Countering the Financing of Terrorism (CFT) and the ongoing debate over securities versus commodities in their probe. The firms are being asked to provide detailed information about their roles in underwriting these IPOs.
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