House Panel Probes Donald Trump Linked Broker Over China IPO Deals

TLDR

• House China committee sent letters to three US brokerages.

• Dominari linked to Eric Trump and Donald Trump Jr.

• Lawmakers cite IPOs tied to pump and dump schemes.

• DOJ secured indictments and seized $214M in proceeds.

A US congressional committee has requested documents from a brokerage linked to the Trump family. Lawmakers are reviewing the role of several firms in underwriting Chinese companies that later faced stock manipulation allegations. The inquiry centers on IPOs that were followed by sharp price swings and investor losses.

The review is being led by the House Select Committee on the Chinese Communist Party. The panel sent letters to Dominari Securities, Revere Securities, and D Boral Capital.

Committee chair John Moolenaar and ranking member Ro Khanna requested internal records related to specific IPOs. The firms were asked to provide documents by the end of the week.

Committee Seeks IPO Records and Compliance Details

The letters request communications, trading data, and compliance procedures used during the IPO process. Lawmakers also asked for information on funding sources and marketing activities tied to the listings.

The committee said some Chinese small-cap companies experienced rapid price increases after listing on US exchanges. According to the letters, certain stocks later collapsed in value, leaving retail investors with losses.

In a joint statement, Moolenaar and Khanna wrote that “scam centers defraud American households through coordinated ramp and dump stock manipulation schemes.” They added that these schemes involved Chinese shell companies listed in the United States.

The inquiry follows earlier action by the U.S. Securities and Exchange Commission. In September, the SEC launched a task force targeting underwriters and auditors linked to foreign issuers.

Dominari Securities and Trump Family Links

Dominari Securities operates from offices in Trump Tower in New York. Its parent company, Dominari Holdings, counts Eric Trump as its fourth-largest shareholder.

Eric Trump and Donald Trump Jr. joined Dominari’s advisory board in December 2024. Public filings show their roles are advisory rather than executive.

Dominari confirmed it received the committee’s letter and said it would respond in due course. Revere Securities and D Boral Capital did not immediately comment.

D Boral Capital previously assisted Trump Media & Technology Group in going public through a merger in 2024. The brokerage was then known as EF Hutton. Trump’s activities have been under close observation, with the US Senate probing even his crypto investments.

Market Losses and Enforcement Actions

Lawmakers said similar stock schemes may have caused large investor losses since 2023. Figures cited in the review estimate that billions of dollars were affected.

The Federal Bureau of Investigation reported a 300% increase in complaints linked to ramp and dump cases. Many cases involved foreign issuers listed in US markets. The U.S. Department of Justice secured indictments against 10 individuals tied to China. Authorities also seized more than $214 million in alleged fraudulent proceeds.

Committee members said several IPOs underwritten by the firms were later subject to SEC trading suspensions. Some stocks reportedly fell more than 80 percent after initial spikes.

The panel stated that the review aims to determine whether US financial intermediaries followed proper procedures. Lawmakers said they are examining how foreign issuers gain access to American capital markets and how trading activity is monitored after listing.

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