PRINCETON, NJ — A former Princeton resident is accused of defrauding investors out of at least $2.5 million through technology and AI-related ventures, according to Attorney General Jennifer Davenport.
Davenport said that the New Jersey Bureau of Securities, within the Division of Consumer Affairs, filed a lawsuit against Xiao Hu, also known as Mark Hu, and his companies, Skyline Technology USA LLC and Thunderbirds.ME, Inc.
The complaint alleges Hu offered and sold unregistered, fraudulent securities to at least 15 investors, including at least nine New Jersey residents.
The investments included stock offerings, funding, and sponsorship agreements promising fixed returns, and related investment contracts tied to technology and AI development projects, according to the lawsuit.
The lawsuit alleges Hu commingled investor funds with money in his personal bank accounts and misappropriated at least $280,000 for personal expenses, including the purchase of a new home in Florida, a tropical vacation, and private school and college tuition for his children.
"New Jersey families work hard for their money, and protecting residents from fraud is essential to keep our state affordable," said Attorney General Davenport. "Our lawsuit alleges that Mark Hu exploited investors' trust, swindling them and diverted their money for his own personal gain instead of legitimate business purposes. My office will continue holding bad actors accountable and safeguarding the financial security of all New Jerseyans."
The complaint alleges Hu targeted Asian American investors in the Princeton area using WeChat and solicited friends and colleagues, including through in-person "seminars" at the Princeton public library.
It also alleges he falsely claimed to have a Ph.D. in Computer Science from Columbia University and promised annual returns of 10 to 22 percent.
Investors were also promised titles such as "Managing Partner," "Managing Director," "Co-Founder," and "Chief Operation Officer," according to the complaint.
"As we will show, Mark Hu deceived investors into believing they were participating in a legitimate opportunity to grow their money, when in reality the only person profiting from these sham securities was Hu himself," said Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs.
The seven-count lawsuit alleges violations of the New Jersey Uniform Securities Law, including fraud, sale of unregistered securities, and false and misleading statements.
The state is seeking a court order permanently barring Hu from offering, selling, issuing, or promoting securities in New Jersey, along with civil penalties, restitution, and disgorgement.
Hu is also facing criminal charges tied to Skyline.
In February 2026, a state grand jury indicted him on charges of securities fraud, theft by deception, money laundering, and misconduct by a corporate official.
That case is being prosecuted by the New Jersey Division of Criminal Justice.
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