Shao Bank has received a desist and refrain fraud order from California’s Department of Financial Protection and Innovation (DFPI).

As per DFPI’s August 13th Shao Bank order;

Shao Bank was a business entity of unknown type. Shao Bank claimed that it operated under both Shao Limited and Shao Global Future Limited.

Shao Bank also claimed to be part of an entity called the Global Future Enterprise Group.

Beginning at least as early as 2023, Shao Bank offered and sold securities in the form of investment contracts and/or bonds in California through general solicitations on its website.

Shao Bank’s website claimed that it offered banking services, accepted deposits, offered mortgage loans, consumer loans, and business loans, and offered insurance policies.

In reality, Shao Bank was not a real bank.

The Commissioner has not issued Shao Bank a certificate authorizing it to engage in the banking business in California.

The bonds offered by Shao Bank were securities that were neither qualified nor exempt from the qualification requirement under the CSL.

The Department has not issued a permit or other form of qualification authorizing Shao Bank to sell these securities in California.

DFPI’s Shao Bank desist and refrain order pertains to alleged violations of California’s Financial Code and Corporations Code, both of which are part of California’s Corporate Securities Law.

BehindMLM reviewed Shao Bank in October 2023, noting it to be an MLM Ponzi scheme built around fake bank bonds.

Shao Bank operated through a Hong Kong shell company. While we can’t confirm, Shao Bank website traffic suggested it was run by eastern European scammers.

Following a Shao Bank pyramid fraud warning from the Central Bank of Russia in December 2023, Shao Bank collapsed in May 2024.