A Republican-led congressional committee has launched an investigation into Dominari Securities, a financial firm with ties to the Trump family, over its role in facilitating US IPOs of Chinese stocks involved in pump-and-dump schemes. The House committee on China sent letters to Dominari and two other underwriters demanding information about their work with Chinese small-cap companies later implicated in stock manipulation.

The bipartisan committee, led by Republican John Moolenaar and Democrat Ro Khanna, accused the firms of enabling organized crime networks in China to defraud American investors through coordinated 'ramp-and-dump' schemes. Dominari Securities, located in Trump Tower and owned by Dominari Holdings, counts Eric Trump as its fourth-largest shareholder and both Eric Trump and Donald Trump Jr as advisory board members. The committee gave the firms until Friday to provide information about potentially manipulated Chinese stocks.

This investigation marks an escalation in efforts to combat foreign-linked securities fraud. The SEC recently launched a task force targeting US-based gatekeepers facilitating violations from foreign jurisdictions, while the FBI reported a 300% increase in ramp-and-dump fraud complaints. The committee noted that public filings identify Dominari as an underwriter for Chinese issuers later associated with suspected manipulation, several of which faced SEC trading suspensions or experienced price collapses exceeding 80%.