Ponzi Scheme Ripped $10M From Chinese Americans! Funds Used for Personal Fun!

SEC v. Bin Hao, Qidian, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26500, dated March 17, 2026.

The SEC charged Bin Hao and Qidian LLC with operating a Ponzi scheme that defrauded Chinese American investors. Hao and Qidian allegedly raised at least $10.3 million by misrepresenting investments in real estate ventures, while actually using new investor funds to pay earlier investors and misappropriating over $793,000 for personal expenses. A final judgment ordered Hao to pay over $2.2 million in disgorgement, interest, and penalties.

In Plain English

Imagine someone promises you a really high return, like 8-25% a year, on an investment. They say your money will be used to lend to a real estate company. But, the real estate company stopped paying back the loans. Instead of telling investors the truth, the person kept taking new money and used it to pay off the earlier investors, like a pyramid scheme. They also took some of the money for themselves. The court ordered them to pay back the money and a penalty.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

  1. Promising High Returns From at least January 2017 to 2021, Bin Hao and Qidian LLC solicited investors by offering high annual return rates of 8-25%. They claimed these returns would be generated by providing loans to a Miami-based real estate company.
  2. Misrepresenting Loan Status Starting in January 2019, the Miami real estate company stopped paying nearly all interest on the loans it received from Qidian. Despite this critical development, Hao and Qidian did not inform investors.
  3. Continuing to Solicit Funds Even after the real estate company defaulted on interest payments, Hao and Qidian continued to solicit new investors. They raised at least $10.3 million after January 2019.
  4. Fabricating Investment Success Hao and Qidian misrepresented that investor proceeds were being used for real estate ventures to generate 'guaranteed' annual investment returns. This was false, as the underlying loans were no longer generating income.
  5. Operating a Ponzi Scheme The defendants used more than $2.3 million of new investor money to pay interest to prior investors. This is a hallmark of a Ponzi scheme, where returns are paid from new capital rather than actual profits.
  6. Misappropriating Investor Funds Bin Hao personally misappropriated at least $793,267 of investor money. These funds were used to pay for personal expenses, further diverting capital from the promised real estate investments.

The Enforcement Action

On March 5, 2026, the U.S. District Court for the Southern District of Florida entered a final judgment against defendant Bin Hao in the SEC’s civil enforcement action against Hao and his company, Qidian LLC. The SEC’s complaint alleged that from at least January 2017 to as late as 2021, Hao and Qidian sold promissory notes and membership interests in various special purpose vehicles to investors with high annual return rates of 8-25% to facilitate providing loans to a Miami-based real estate company. The complaint alleged that starting in January 2019, the Miami real estate company ceased paying nearly all interest on loans it received from Qidian. Nevertheless, Qidian and Hao allegedly continued to solicit investors after January 2019, and raised at least $10.3 million while misrepresenting that Qidian was using investor proceeds to invest in real estate ventures to generate “guaranteed” annual investment returns. The complaint further alleged that Qidian and Hao used more than $2.3 million of new investor money to pay prior investors’ interest in a Ponzi-like fashion, and Hao misappropriated at least $793,267 to pay personal expenses. Without admitting or denying the allegations made in the complaint, Hao and Qidian consented to bifurcated judgments, entered by the Court on March 6, 2025, in which they agreed to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and to pay disgorgement with prejudgment interest and/or a civil payment in amounts determined by the Court upon motion by the Commission. In addition, Hao agreed to an officer-and-director bar. The final judgment as to Hao, which concludes the SEC’s litigation on this matter, ordered Hao to pay disgorgement of $1,526,484, prejudgment interest of $475,201, and a civil penalty of $236,451, for a total of $2,238,136.

Named in this action: Bin Hao, Qidian, LLC.