By: Richard L. Smith
New Jersey Attorney General Jennifer Davenport announced that the New Jersey Bureau of Securities has filed a civil lawsuit against a former Princeton resident accused of orchestrating an investment fraud scheme that allegedly defrauded investors out of at least $2.5 million while using portions of the money to fund a lavish personal lifestyle.
According to a complaint filed in Mercer County Superior Court, Xiao Hu, also known as Mark Hu, and his companies, Skyline Technology USA LLC and Thunderbirds.ME, Inc., allegedly offered and sold unregistered and fraudulent securities to at least 15 investors, including at least nine New Jersey residents.
State officials said the investments included stock offerings, funding and sponsorship agreements promising fixed returns, and other investment contracts tied to technology and artificial intelligence development projects.
Investigators allege Hu commingled investor funds with his personal bank accounts and misappropriated at least $280,000 for personal expenses.
According to the lawsuit, those expenditures included the purchase of a new home in Florida, a tropical vacation, and private school and college tuition payments for his children.
Authorities contend Hu targeted Asian American investors in the Princeton area through the social media platform WeChat and by hosting investment seminars at the Princeton Public Library.
The complaint further alleges that Hu solicited friends, colleagues, and community members while falsely portraying himself as a highly credentialed technology entrepreneur.
According to the lawsuit, Hu frequently claimed he held a Ph.D. in Computer Science from Columbia University, a representation investigators say was false.
Officials also allege he promised annual investment returns ranging from 10% to 22% and awarded investors impressive-sounding titles such as “Managing Partner,” “Managing Director,” “Co-Founder,” and “Chief Operation Officer,” despite those titles having little or no connection to actual business roles.
The seven-count lawsuit alleges violations of the New Jersey Uniform Securities Law, including operating a scheme to defraud investors, selling unregistered securities, and making false and misleading statements while omitting material information needed by investors.
The state is seeking a court order permanently barring Hu and the companies from offering, selling, issuing, or promoting securities in New Jersey or participating in the securities industry in any professional capacity.
The lawsuit also seeks civil penalties, restitution for investors, disgorgement of profits allegedly obtained through the scheme, and other relief deemed appropriate by the court.
Hu’s wife, Jennifer Rong, and Think Net, Inc. are named as nominal defendants in the case as the state seeks to recover financial benefits allegedly derived from the fraudulent conduct.
In addition to the civil action, Hu is facing criminal charges stemming from the alleged sale of securities connected to Skyline. 
In February 2026, a state grand jury indicted him on charges including securities fraud, theft by deception, money laundering, and misconduct by a corporate official.
The criminal case is being prosecuted by the New Jersey Division of Criminal Justice.