(Photo: Frank Franklin Ii/Associated Press)
Benjamin Wey, a Wall Street financier who helped numerous Chinese companies get access to U.S. markets through “reverse mergers,” was arrested Thursday and charged with manipulating the companies’ shares to allegedly net himself tens of millions of dollars in illegal profits.
The criminal and civil charges against Mr. Wey, the chief executive of New York Global Group, represent the highest-profile case to date in the government’s attempt to crack down amid a wave of alleged accounting fraud and other improprieties involving small Chinese companies that went public in the U.S.
Mr. Wey secretly controlled chunks of the shares of the companies for which he engineered reverse mergers and worked to inflate the companies’ stock prices while selling the shares he controlled at artificially high levels, according to the indictment unsealed Thursday in federal court in Manhattan. He also faces a civil suit from the Securities and Exchange Commission.
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