Princeton Resident in Alleged $2.5 Million Investment Fraud Scheme
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By Adam Rizvi | Editor-in-Chief, The India Observer (TIO): TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport announced that the New Jersey Bureau of Securities has filed a civil lawsuit against former Princeton resident Xiao “Mark” Hu, alleging that he defrauded investors out of at least $2.5 million through unregistered and fraudulent investment offerings tied to technology and artificial intelligence ventures.
According to a complaint filed in Mercer County Superior Court, Hu allegedly used two companies, Skyline Technology USA LLC and Thunderbirds.ME, Inc., to offer and sell investment opportunities to at least 15 investors, including several New Jersey residents. State officials allege that the investments included stock offerings, sponsorship agreements, funding arrangements, and other contracts that promised fixed returns connected to technology and AI development projects.
The lawsuit alleges that Hu misrepresented investment opportunities, commingled investor funds with personal accounts, and improperly used investor money for personal expenses. Authorities claim that at least $280,000 was diverted for personal purposes, including the purchase of a home in Florida, family vacations, and educational expenses.
Attorney General Davenport stated that protecting New Jersey residents from financial fraud remains a priority and alleged that investors were misled into believing they were participating in legitimate business ventures.
State officials further allege that Hu targeted members of the Asian American community in and around Princeton through the social media platform WeChat and by conducting informational seminars. The complaint claims that Hu falsely represented his educational credentials and promised annual investment returns ranging from 10 percent to 22 percent.
According to the lawsuit, investors were also offered various business titles, including “Managing Partner,” “Managing Director,” “Co-Founder,” and “Chief Operation Officer,” despite those titles allegedly having little or no connection to actual business responsibilities.
The seven-count civil complaint alleges violations of the New Jersey Uniform Securities Law, including the sale of unregistered securities, securities fraud, and making false or misleading statements to investors.
The state is seeking a permanent injunction barring the defendants from offering or selling securities in New Jersey, as well as civil penalties, restitution for investors, disgorgement of profits, and other equitable relief. The lawsuit also seeks recovery of financial benefits allegedly obtained by Hu, his wife Jennifer Rong, and Think Net, Inc., which are named as nominal defendants.
In addition to the civil case, Hu is facing criminal charges arising from the same alleged conduct. State officials noted that a grand jury indictment returned earlier this year includes charges of securities fraud, theft by deception, money laundering, and misconduct by a corporate official. The criminal matter is being prosecuted by the New Jersey Division of Criminal Justice.
The Bureau of Securities emphasized the importance of investor due diligence and encouraged residents to verify the registration status and disciplinary history of financial professionals before investing.
Authorities continue to urge investors to “Check Before You Invest” and to report suspected investment fraud to state regulators.
Editorial Comment – Adam Rizvi
Cases involving alleged investment fraud serve as an important reminder that trust alone should never replace careful financial due diligence. Investors should independently verify credentials, registration status, and investment claims before committing their hard-earned savings. Financial transparency and accountability remain essential to protecting families and communities from potentially devastating losses.
Editor-in-Chief Adam Rizvi, a respected journalist and active community leader, has long covered New Jersey’s civic and political landscape. Through The India Observer, he continues to highlight stories of leadership, compassion, accountability, and integrity that shape our state and inspire inclusive progress.
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