DOJ Charges Ostin Technology Co-CEO Over Securities Fraud Scheme

Dow Jones09-12

By Nicholas G. Miller

The Department of Justice charged the co-chief executive of Ostin Technology and a financial adviser with orchestrating a $100 million securities fraud scheme using the Chinese technology company's stock.

The agency alleged the defendants siphoned Ostin shares in non-bona fide securities transactions and then dumped the stock after manufacturing a social media campaign to boost the share price.

Prosecutors said the defendants distributed tens of millions of heavily discounted Ostin shares on April 15 and then promoted the stock by impersonating real investment advisers and promoting the stock on social media.

They then orchestrated the selling of the shares that select investors had received heavily discounted, generating profits of more than $110 million, the DOJ said. On June 26, the company lost over $950 million in market capitalization, or 94% of its value, leading to significant losses for other investors, the prosecutors alleged.

"The defendants targeted American retail investors through a predatory pump and dump scheme to take advantage of the artificial inflation of the price of OST shares," said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department's Criminal Division.

Ostin Technology didn't immediately respond to a request for comment.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

September 12, 2025 10:30 ET (14:30 GMT)

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Miller \n\n\n \n\n\n  The Department of Justice charged the co-chief executive of Ostin Technology and a financial adviser with orchestrating a $100 million securities fraud scheme using the Chinese technology company's stock. \n\n\n  The agency alleged the defendants siphoned Ostin shares in non-bona fide securities transactions and then dumped the stock after manufacturing a social media campaign to boost the share price. \n\n\n  Prosecutors said the defendants distributed tens of millions of heavily discounted Ostin shares on April 15 and then promoted the stock by impersonating real investment advisers and promoting the stock on social media. \n\n\n  They then orchestrated the selling of the shares that select investors had received heavily discounted, generating profits of more than $110 million, the DOJ said. On June 26, the company lost over $950 million in market capitalization, or 94% of its value, leading to significant losses for other investors, the prosecutors alleged. \n\n\n  \"The defendants targeted American retail investors through a predatory pump and dump scheme to take advantage of the artificial inflation of the price of OST shares,\" said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department's Criminal Division. \n\n\n  Ostin Technology didn't immediately respond to a request for comment. \n\n\n \n\n\n  Write to Nicholas G. 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