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Chief Executive Officer of Technology Company Indicted in Alleged Million-Dollar Securities Fraud Ponzi Scheme ###### **For Immediate Release: February 12, 2026** **Office of the Attorney General** – Jennifer Davenport, _Acting Attorney General _**Division of Criminal Justice** _ _– Theresa L. Hilton,_Director _**Office of Securities Fraud and Financial Crimes Prosecutions** – Pablo Quiñones, _Legal Chief_ __ ###### **For Further Information:** **Media Inquiries-** Matthew Reilly [email protected] **TRENTON** — Acting Attorney General Jennifer Davenport today announced that a state grand jury indicted the chief executive officer of Skyline Technologies USA LLC (Skyline) for his role in defrauding investors of more than $1 million. Skyline was a Mercer County-based technology company purportedly involved in developing and using artificial intelligence (AI) trading and other technology products. Xiao Hu, aka Mark Hu, 55, formerly of Princeton, New Jersey, now residing in Orlando, Florida, is charged by indictment with two counts of securities fraud (second and third degree), one count of theft by deception (second degree), two counts of money laundering (second and third degree), and one count of misconduct by a corporate official (second degree). “The kind of corporate fraud alleged in this case exploits people who are trying to invest in our economy,” **said** **Acting Attorney General Davenport**. “The defendant allegedly used the allure of AI technology to defraud investors of more than $1 million. We will continue to prosecute those who use their corporate positions to cheat others.” “The defendant allegedly used his company as a vehicle to take over $1 million from unsuspecting investors,” **said DCJ Director Theresa L. Hilton.** “DCJ will always work to protect the public from such schemes.” “The victims of this alleged scheme put their trust in the defendant and his company,”**said Legal Chief Pablo Quiñones of the Office of Securities Fraud and Financial Crimes Prosecutions (OSFFCP)**. “He allegedly took advantage of a widespread public interest in AI, and other technology products, to mislead investors into believing that Skyline was a legitimate technology company. Instead, their money was allegedly stolen and laundered by the defendant for his personal benefit and to promote a Ponzi scheme.” As alleged in the indictment, from August 2019 to November 2023, Hu fraudulently induced five victims to invest a total of approximately $400,000 with Skyline based on misrepresentations that Skyline was developing and using an AI trading product that would guarantee annual investment returns ranging from 10 percent to 22 percent. Hu allegedly deceived another victim, identified in the indictment as H.M., to invest approximately $600,000 in Skyline itself based on misrepresentations about Skyline’s development and use of certain technology products and how H.M.’s funds would be used. In total, Hu induced over $1 million from the investors. Skyline, however, allegedly had not developed, and was not using the AI trading program or other technology products that Hu represented that it had purportedly created. Most of the funds provided by investors were instead either laundered by Hu to pay investors purported returns on their original investments in a manner consistent with a “Ponzi” scheme or were otherwise siphoned from the company for Hu’s personal use. The indictment alleges that Hu diverted investors’ funds from Skyline for personal expenses, such as payments toward a new home, luxury cars, private school tuition, his mortgage, and his personal credit cards. The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. Second-degree crimes carry a sentence of up to 10 years in state prison and a fine of up to $150,000. Third-degree crimes carry a sentence of up to five years in a state prison and a fine of up to $15,000. Deputy Attorney General Jack Daily is handling this matter for the OSFFCP, under the supervision of Legal Chief Quiñones and Deputy Legal Chief Brendan Stewart. The charges are the result of an investigation conducted by detectives and investigators within the Division of Criminal Justice assigned to the OSFFCP, including Detective Stephen Kircher and Special Investigators Jordan Goodman and Sean McCarthy. Acting Attorney General Davenport thanked the New Jersey State Police and the U.S. Postal Inspection Service – New York Division for their assistance with the investigation. The investigation remains ongoing. Anyone with pertinent information is asked to contact the DCJ’s tip line at (800) 277-2427 or use the OSFFCP’s complaint email at [email protected]. * * * Defense counsel: TBD ### https://www.njoag.gov/chief-executive-officer-of-technology-company-indicted-in-alleged-million-dollar-securities-fraud-ponzi-scheme/