SEC Charges New Jersey Investment Adviser and His Firm with Fraud and Other Violations
summary
David Yow Shang Chiueh and Upright Financial Corp. face SEC charges for violating concentration limits and misrepresenting fund policies, causing $1.6 million in losses.
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The SEC charged David Yow Shang Chiueh and Upright Financial Corp. with violating antifraud and fiduciary provisions of the Investment Advisers and Investment Company Acts. The defendants' failure to adhere to industry concentration limits and delayed stock sales resulted in approximately $1.6 million in losses for the Upright Growth Fund. The SEC is seeking permanent injunctive relief, the return of ill-gotten gains, and civil penalties.
narrative
The SEC has filed charges against David Yow Shang Chiueh and his firm, Upright Financial Corp., for violating antifraud and fiduciary provisions of federal securities laws. Despite a 2021 settlement for similar misconduct, the defendants allegedly continued to violate industry concentration limits and misrepresent fund policies between 2021 and 2024. These violations, specifically regarding single-company and industry concentration, resulted in approximately $1.6 million in losses for the Upright Growth Fund. The defendants also faced allegations of mismanaging the fund's board and hiring an accountant without required votes. An amended complaint filed in April 2025 removed certain allegations regarding trustee independence and board governance. The SEC is now seeking permanent injunctive relief, the return of ill-gotten gains, and civil penalties.
Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Parties
david yow shang chiueh and upright financial corp.during this same periodsec’s complaintSecurities and Exchange Commission
Keywords
secinvestmentfundjersey investmentfund boardwithout requiredchiuehuprightboardnewfraudallegesinvestment adviseradviser firmfirm fraud
Extracted insights
Dollar amounts 1
- $1.60M $1.6 million $1M–$10M
Entities 4
- company david yow shang chiueh and upright financial corp.
- person during this same period
- agency sec’s complaint
- agency Securities and Exchange Commission
Triples 7
- Securities and Exchange Commission announced it has filed charges against David Yow Shang Chiueh and Upright Financial Corp.
- David Yow Shang Chiueh and Upright Financial Corp. settled SEC charges November 2021
- Defendants continued their fraud between November 24, 2021 and June 23, 2024
- Defendants’ decision to wait more than two-and-a-half years resulted in losses of approximately $1.6 million
- Defendants engaged in further misconduct during this same period
- SEC’s complaint seeks permanent injunctive relief, return of allegedly ill-gotten gains, and civil penalties
- Securities and Exchange Commission filed an amended complaint April 11, 2025
Extracted body text (3,055c)
The Securities and Exchange Commission today announced that it has filed charges against David Yow Shang Chiueh of East Hanover, New Jersey and his investment advisory firm, Upright Financial Corp., for misconduct and for investing more than 25 percent of Upright Growth Fund’s assets in a single company over multiple years, causing losses of $1.6 million. In November 2021, Chiueh and Upright settled SEC charges that they, as investment advisers to Upright Growth Fund, violated its policy by investing more than 25 percent of its assets in one industry between July 2017 and June 2020, committing fraud and breaching their fiduciary duties. Despite being ordered to stop this conduct, the SEC’s complaint alleges, the defendants continued their fraud by violating the 25 percent industry concentration limit and making misrepresentations about it between at least November 24, 2021, and June 23, 2024. As a result, the complaint alleges that the defendants’ decision to wait more than two-and-a-half years to sell the relevant stock resulted in losses of approximately $1.6 million to the fund and its investors. Additionally, the SEC’s complaint alleges the defendants engaged in further misconduct during this same period when Chiueh operated the fund’s board without the required number of independent trustees and misrepresented the independence of one in filings. The defendants also failed to provide or withheld key information from the board, according to the complaint, and they hired an accountant for the fund without the required vote by the board. “As alleged, the defendants not only ran the fund contrary to its fundamental investment policies, but they actively misled investors and the fund’s board about their conduct,” said Corey Schuster, Chief of the Division of Enforcement’s Asset Management Unit. “Undeterred by their prior SEC settlement involving these very same issues, we allege that the defendants repeatedly violated fundamental rules designed to protect investors in mutual funds.” The SEC’s complaint charges the defendants with violating antifraud and other provisions of the federal securities laws, including provisions of the Investment Advisers Act and Investment Company Act. The complaint seeks permanent injunctive relief, return of allegedly ill-gotten gains, and civil penalties. The SEC’s investigation was conducted by Stephen Holden and Ming Ming Yang, and supervised by Lee A. Greenwood and Mr. Schuster, all of the Enforcement Division’s Asset Management Unit, as well as Debra Jaroslawicz, senior trial counsel in the New York Regional Office. The litigation will be led by Ms. Jaroslawicz, Mr. Holden, and Ms. Yang. Update: On April 11, 2025, the SEC filed an amended complaint that no longer alleges that Chiueh operated the fund’s board without the required number of independent trustees and misrepresented the independence of one in filings. The amended complaint removes a charge against Chiueh for aiding and abetting Upright Investments Trust’s violation of Investment Company Act Section 10(a).
OCR text (3,055c · html-text · 99% conf)
The Securities and Exchange Commission today announced that it has filed charges against David Yow Shang Chiueh of East Hanover, New Jersey and his investment advisory firm, Upright Financial Corp., for misconduct and for investing more than 25 percent of Upright Growth Fund’s assets in a single company over multiple years, causing losses of $1.6 million. In November 2021, Chiueh and Upright settled SEC charges that they, as investment advisers to Upright Growth Fund, violated its policy by investing more than 25 percent of its assets in one industry between July 2017 and June 2020, committing fraud and breaching their fiduciary duties. Despite being ordered to stop this conduct, the SEC’s complaint alleges, the defendants continued their fraud by violating the 25 percent industry concentration limit and making misrepresentations about it between at least November 24, 2021, and June 23, 2024. As a result, the complaint alleges that the defendants’ decision to wait more than two-and-a-half years to sell the relevant stock resulted in losses of approximately $1.6 million to the fund and its investors. Additionally, the SEC’s complaint alleges the defendants engaged in further misconduct during this same period when Chiueh operated the fund’s board without the required number of independent trustees and misrepresented the independence of one in filings. The defendants also failed to provide or withheld key information from the board, according to the complaint, and they hired an accountant for the fund without the required vote by the board. “As alleged, the defendants not only ran the fund contrary to its fundamental investment policies, but they actively misled investors and the fund’s board about their conduct,” said Corey Schuster, Chief of the Division of Enforcement’s Asset Management Unit. “Undeterred by their prior SEC settlement involving these very same issues, we allege that the defendants repeatedly violated fundamental rules designed to protect investors in mutual funds.” The SEC’s complaint charges the defendants with violating antifraud and other provisions of the federal securities laws, including provisions of the Investment Advisers Act and Investment Company Act. The complaint seeks permanent injunctive relief, return of allegedly ill-gotten gains, and civil penalties. The SEC’s investigation was conducted by Stephen Holden and Ming Ming Yang, and supervised by Lee A. Greenwood and Mr. Schuster, all of the Enforcement Division’s Asset Management Unit, as well as Debra Jaroslawicz, senior trial counsel in the New York Regional Office. The litigation will be led by Ms. Jaroslawicz, Mr. Holden, and Ms. Yang. Update: On April 11, 2025, the SEC filed an amended complaint that no longer alleges that Chiueh operated the fund’s board without the required number of independent trustees and misrepresented the independence of one in filings. The amended complaint removes a charge against Chiueh for aiding and abetting Upright Investments Trust’s violation of Investment Company Act Section 10(a).