The SEC alleges that QZ Asset and Yeung falsely claimed that QZ Asset would use proprietary "artificial intelligence"-based technology to help generate extraordinary weekly returns while promising “100%” protection for client funds and that well-known and reputable financial and legal firms were providing services to the company.

The SEC also alleges that the defendants falsely claimed that QZ Global had applied to have its common stock listed on the Nasdaq Global Select Market and that they had positive communications with SEC staff regarding this effort.

In addition, QZ Global allegedly touted its SEC filings, which were materially deficient, to lure clients and prospective clients into handing over their funds to QZ Asset.

According to the SEC, after engaging in this global, multi-million-dollar fraud, the defendants allegedly stopped communicating with clients and QZ Asset’s website, which clients used to access their funds, was taken down.

The SEC’s claim alleges the defendants with breaches of the anti-fraud provisions of the federal securities laws and seeks permanent injunctive relief, return of allegedly ill-gotten gains and civil penalties.

*The SEC habitually uses the term "charges" but it brings civil not criminal proceedings. It correctly refers to "proceedings" not "prosecution" and to "civil penalties" not "fines."