SEC Secures Final Judgment in $26M Ponzi Scheme Targeting Chinese Americans
A federal court has entered a final judgment against Bin Hao, concluding the U.S. Securities and Exchange Commission’s litigation regarding a fraudulent real estate investment scheme that primarily targeted the Chinese-American community. The final judgment orders Hao to pay more than $2.2 million in disgorgement, interest, and civil penalties.
According to the SEC’s original complaint filed in September 2023, Hao and his now-defunct company, Qidian LLC, raised approximately $26 million from more than 60 investors across 17 states between 2017 and 2021.
The defendants sold promissory notes and membership interests in special purpose vehicles, or SPVs, promising “guaranteed” annual returns of 8% to 25%. Hao, a 48-year-old resident of Herndon, Va., portrayed himself as a successful hedge fund trader and real estate financier to solicit investors through word-of-mouth and prior relationships.
The SEC alleged that the scheme shifted into a Ponzi-like phase in early 2019. While Hao claimed investor funds were used for Miami-based real estate developments, the primary borrower – a Miami real estate company – had actually ceased making interest payments and was nearing insolvency.
Despite knowing the borrower was in “dire financial condition,” Hao and Qidian allegedly solicited new capital, raising at least $10.3 million from 67 investors after the borrower stopped paying interest. According to the SEC, they continued to claim investments carried “project completion” and “principal” guarantees and used more than $2.3 million of new investor money to pay interest and principal to previous investors.
Hao personally misappropriated at least $793,267 for personal expenses including BMW lease payments, mortgage payments on his residence, and high-end credit card bills.
The scheme ultimately collapsed following the September 2020 bankruptcy of the Miami-based real estate entity that Qidian had funded.
The final judgment orders Hao to pay a total of $2,238,136, consisting of $1,526,484 in disgorgement, $475,201 in prejudgment interest, and a civil penalty of $236,451.
Hao and Qidian previously consented to the judgments in March 2025 without admitting or denying the allegations.
Visit the AltsWire directory page.
