Government alleges Benjamin Wey used illegal profits from reverse mergers between Chinese, U.S. companies.
Benjamin Wey, a Wall Street financier who helped numerous Chinese companies get access to U.S. markets through “reverse mergers,” was arrested Thursday and charged with manipulating the companies’ shares to allegedly net himself tens of millions of dollars in illegal profits.
The criminal and civil charges against Mr. Wey, the chief executive of New York Global Group, represent the highest-profile case to date in the government’s attempt to crack down amid a wave of alleged accounting fraud and other improprieties involving small Chinese companies that went public in the U.S.
WSJ reached out to Dan David of GeoInvesting LLC so he could weigh in on Wey news:
Mr. Wey has been the target of allegations in the past from short sellers and other critics of Chinese companies. “There were a great many of us that were shaking our heads for years that if this can’t be stopped, nothing can be,” said Dan David, vice president and co-founder of GeoInvesting, a financial portal and research boutique that provides information on Chinese companies. “We do see this as some kind of validation.”