U.S. Lawmakers Investigate Brokerage Firms Linked to Trump Family, Alleging Underwriting of Chinese Company IPOs May Involve Stock Price Manipulation

Odaily News U.S. House of Representatives has launched an investigation into several Wall Street underwriters, including Dominari Securities, which has ties to the Trump family. The probe is due to these institutions having assisted multiple Chinese companies in listing in the United States, with the related stocks subsequently being accused of market manipulation. Committee Chairman John Moolenaar and ranking Democrat Ro Khanna sent inquiry letters to three firms on Monday, demanding they provide information related to underwriting Chinese company IPOs. The three companies are D. Boral Capital, Dominari Securities, and Revere Securities. In the letters, lawmakers pointed out that these companies were used for "ramp-and-dump" style stock price manipulation after going public: related Chinese shell companies coordinated trading and promotional activities to inflate stock prices, then sold shares to retail investors at high levels, leading to significant price declines. In some cases, large numbers of accounts traded buy orders at nearly identical prices above the IPO price, briefly inflating valuations before insiders quickly cashed out and exited. (Cointelegraph)