US lawmakers have launched an investigation into several Wall Street underwriters, including Dominari Securities, whose parent company is linked to the Trump family, over their role in attracting Chinese companies to US stock markets that were later linked to stock manipulation schemes.
On Monday, the House Select Committee on China, chaired by Rep. John Mulenare and Rep. Roe Hanna, sent letters to three U.S. companies – D. Boral Capital, Dominari Securities and Revere Securities – for information about the Chinese initial public offering (IPO) they helped underwrite.
“These fraud centers defraud American households through coordinated stock manipulation schemes involving Chinese companies listed on US exchanges, which your company appears to be facilitating,” the lawmakers said.
Chinese companies are said to have used U.S. IPOs to boost their stock prices through coordinated trading and promotions, then dumped the shares on retail investors before the stock crashed. In some cases, dozens of accounts allegedly placed buy orders nearly identical to the IPO price, temporarily driving up prices before insiders sold off their shares.
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China’s stock plans are siphoning off billions of dollars from investors
Lawmakers cited estimates that as much as $16 billion in American investor wealth could be lost through such schemes by 2023. They also pointed to FBI data showing a 300% increase in complaints related to Chinese stock manipulation cases.
The request from the underwriters requires documents, including communications, business records, funding sources and due diligence policies related to Chinese IPOs.
The committee said it was investigating whether U.S. financial intermediaries unwittingly helped facilitate manipulation schemes involving Chinese issuers. The companies have been asked to submit the requested documents by Friday.
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Dominari is the focus of China’s stock testing
One of the brokerage firms named in the investigation is Dominari, which has ties to the Trump family. Located in New York, Trump Tower is owned by Dominari Holdings, of which Eric Trump, son of US President Donald Trump, is the fourth largest shareholder. Eric Trump and Donald Trump Jr. joined the company’s advisory board in February 2025.
Last year, Dominari helped raise funds for Thumzup, a public company that adopted a Bitcoin (BTC) treasury strategy and also received millions of dollars in investment from Donald Trump Jr.
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