SEC Charges Former Executives of HF Foods Group with Concealing Millions of Dollars of Liabilities and Misappropriating Investor Funds

The Securities and Exchange Commission yesterday charged Zhou Min Ni and Jian Ming (Jonathan) Ni, former executives of Nevada-based restaurant food distribution company HF Foods Group, Inc., for their role in a fraudulent scheme to hide millions of dollars of HF Foods’s liabilities, misappropriate investor funds, and mislead the company’s auditors.

According to the SEC’s complaint, which was filed in the U.S. District Court for the District of Columbia, Zhou Min Ni, while serving as HF Foods’s CEO and Chairman, misappropriated company funds for himself and his family, including to finance and maintain a stable of exotic vehicles. The SEC’s complaint also alleges that Zhou Min Ni used misleading documents to hide millions of dollars in liabilities and misled the company’s auditors. The SEC’s complaint further alleges that Jonathan Ni, who served as CFO of HF Foods from 2018 until April 2019, knowingly and substantively assisted Zhou Min Ni’s scheme.

Source: SEC Charges Former Executives of HF Foods Group with Concealing Millions of Dollars of Liabilities and Misappropriating Investor Funds