SEC v. QZ Global Ltd.; QZ Asset Management Ltd.; and Blake Yeung Pu Lei, No. LR-26083, District of South Dakota (Aug. 27, 2024) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26083 / August 27, 2024 Securities and Exchange Commission v. QZ Global Ltd., et al., No. 4:24-cv-04153-CBK (D.S.D. filed Aug. 26, 2024) SEC Charges China-based QZ Asset Management Ltd. and its CEO in Pre-IPO Fraud Scheme The Securities and Exchange Commission today announced charges against China-based investment adviser QZ Asset Management Limited a/k/a Qianze Asset Management Limited (QZ Asset), its South Dakota-based holding company QZ Global Limited, and the CEO of both entities, Blake Yeung Pu Lei a/k/a Yang Pulei (Yeung), with fraud for lying to clients and prospective clients regarding the safety of their investments, the investment adviser's relationships with certain well-known banks and law firms, and the holding company's initial public stock offering. The SEC complaint alleges that QZ Asset, QZ Global, and Yeung defrauded hundreds of individuals out of at least $6 million dollars. According to the complaint, QZ Asset and Yeung falsely claimed that QZ Asset would use its proprietary AI-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 complaint 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 complaint, 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 complaint charges all defendants with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a)(1) and (3) of the Securities Act of 1933 ("Securities Act"), and in addition charges QZ Asset with violating Section 17(a)(2) of the Securities Act and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 ("Advisers Act") and charges Yeung with aiding and abetting QZ Asset's violations of Sections 206(1) and 206(2) of the Advisers Act. The complaint seeks permanent injunctive relief, disgorgement along with prejudgment interest, and civil penalties against all of the defendants and also seeks an officer-and-director bar against Yeung. The SEC's ongoing investigation is being conducted by Yamini Piplani Grema, with assistance from Jodanna Haskins and Helena Engelhart Bean of the Denver Regional Office and additional assistance from the SEC's Office of International Affairs. It is being supervised by Danielle R. Voorhees, Nicholas P. Heinke, and Mr. Burt. The litigation will be led by Ms. Haskins and will be supervised by Gregory A. Kasper, Mr. Heinke, and Mr. Burt. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. Investors can learn more about the risks of investing in pre-IPO offerings in this Investor Alert. Any person with information relating to this matter should contact the staff of the Division of Enforcement of the Securities and Exchange Commission by sending an email to [email protected].

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26083 / August 27, 2024 Securities and Exchange Commission v. QZ Global Ltd., et al., No. 4:24-cv-04153-CBK (D.S.D. filed Aug. 26, 2024) SEC Charges China-based QZ Asset Management Ltd. and its CEO in Pre-IPO Fraud Scheme The Securities and Exchange Commission today announced charges against China-based investment adviser QZ Asset Management Limited a/k/a Qianze Asset Management Limited (QZ Asset), its South Dakota-based holding company QZ Global Limited, and the CEO of both entities, Blake Yeung Pu Lei a/k/a Yang Pulei (Yeung), with fraud for lying to clients and prospective clients regarding the safety of their investments, the investment adviser's relationships with certain well-known banks and law firms, and the holding company's initial public stock offering. The SEC complaint alleges that QZ Asset, QZ Global, and Yeung defrauded hundreds of individuals out of at least $6 million dollars. According to the complaint, QZ Asset and Yeung falsely claimed that QZ Asset would use its proprietary AI-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 complaint 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 complaint, 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 complaint charges all defendants with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a)(1) and (3) of the Securities Act of 1933 ("Securities Act"), and in addition charges QZ Asset with violating Section 17(a)(2) of the Securities Act and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 ("Advisers Act") and charges Yeung with aiding and abetting QZ Asset's violations of Sections 206(1) and 206(2) of the Advisers Act. The complaint seeks permanent injunctive relief, disgorgement along with prejudgment interest, and civil penalties against all of the defendants and also seeks an officer-and-director bar against Yeung. The SEC's ongoing investigation is being conducted by Yamini Piplani Grema, with assistance from Jodanna Haskins and Helena Engelhart Bean of the Denver Regional Office and additional assistance from the SEC's Office of International Affairs. It is being supervised by Danielle R. Voorhees, Nicholas P. Heinke, and Mr. Burt. The litigation will be led by Ms. Haskins and will be supervised by Gregory A. Kasper, Mr. Heinke, and Mr. Burt. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. Investors can learn more about the risks of investing in pre-IPO offerings in this Investor Alert. Any person with information relating to this matter should contact the staff of the Division of Enforcement of the Securities and Exchange Commission by sending an email to [email protected].