Daniel Yu, the founder of Gotham City Research, likes to compare himself to the Batman of Wall Street, but he has a long list of run-ins with the law, accused of theft, impersonation and financial crimes, and has served at least two prison terms in the US.
The Proskauer firm, which defends Grifols in the United States, has collected in its lawsuit the adventures of the officer who supervised his parole in Colorado, which the then young analyst tried to deceive.
According to the filing, “in 2007, while Yu was working as a stock analyst for Dividend Capital, he stole several cell phones, iPods, computers and checks from the company,” as well as passports, and copied driver’s licenses and other forms of identification of office colleagues. Police searched his home and also found copies of similar documents from students at MIT, where he had been a student.
Yu pleaded guilty to two counts of theft: for one he was ordered to pay $134,152 in restitution to Dividend Capital and one year of probation, while the court suspended his trial for the more serious theft charge for four years.
The following year, the state of Colorado revoked Yu’s probation and ordered his arrest for leaving the state and failing to appear for probation supervision appointments. So, in October 2008, Yu was tried again and sentenced to 90 days in prison.
According to the lawsuit, “the time in prison did little to deter Yu from engaging in criminal activity.” The young executive “deceived and lied to the parole officer about his work situation” and his residence. Finally, he discovered that “the letters, payment receipts and copy of the check provided by Yu” to prove employment status, financial ability to pay compensation and residency were fake.
On October 19, 2011, Yu was arrested again and charged with attempting to influence a public servant and forgery. The trial ended with a plea deal: Daniel Yu pleaded guilty and was re-sentenced to three months in prison, which he served in the Denver County Jail.
With the sentence completed, Yu moved to New York, founded Gotham City Research and specialized in investigating the accounting of publicly traded companies and reporting irregularities to cause the stock market to fall, from what benefits because he has sold them short.
Currently, according to Proskauer’s research, “Yu uses a few other aliases and frequently changes address,” but in the New York state area.
“Gotham was formed to commit financial fraud” states the lawsuit forcefully, with the aim of being “a vehicle and shield for the criminal enterprise”. According to Grifols’ lawyers, “Yu and Gotham have been sued before for illegal and defamatory practices, but they failed to appear in court and failed to fulfill their obligations.”
Gotham, in his view, has no existence of its own beyond Yu, the sole employee or manager who “controls the affairs of Gotham, without regard to the separate existence of the corporate entity.” So, he asserts that “Gotham does not have enough funds, and the funds have been mixed with Yu’s personal funds.”
The lawsuit even calls into question that Gotham City Research is still a legal entity, as it has not met the corporate legal requirements: the state of Delaware canceled its registration as a company in 2021 because it failed to designate a registered agent when the above resigned. Despite this, “Yu still operates a business called Gotham City Research LLC,” the lawsuit notes.
According to Grifols’ lawyers, the firm is also being investigated by the United States Department of Justice for possible abusive practices in the American stock market.
