SEC Obtains Final Judgment Against Defendant in Oil Company Scheme Targeting Chinese-Americans and Eb-5 Investors
Litigation Release No. 25112 / June 10, 2021
Securities and Exchange Commission v. Luca International Group, LLC, et al., No. 3:15-CV-03101 (N.D. Cal. filed July 6, 2015)
On June 9, 2021, the United States District Court for the Northern District of California entered a final judgment against Bingqing Yang, the CEO of Luca International, LLC, in a previously-filed action against eight defendants alleging an affinity fraud scheme that generated more than $68 million from illegal sales of securities in an oil and gas venture. The entry of a judgment against Yang fully resolves the Commission's lawsuit.
Without admitting or denying the allegations against her, Yang consented to entry of a final judgment permanently enjoining her from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, from participating in the issuance, offer or sale of any security of an entity she controls; from soliciting any person or entity to purchase or sell any security; and from acting as an officer or director of a public company. The final judgment also orders Yang to pay $209,672 in disgorgement and $64,579 in prejudgment interest, and a $425,749 civil penalty.