A former Princeton resident has been accused by the state of defrauding investors out of at least $2.5 million through a fraudulent investment scheme tied to technology and artificial intelligence ventures.

Attorney General Jennifer Davenport announced Thursday that the New Jersey Bureau of Securities. has sued Xiao “Mark” Hu and two companies he controlled. Hu allegedly sold unregistered securities to at least 15 investors, including nine New Jersey residents, while making false promises about returns.

According to the complaint, Hu targeted Asian American investors in the Princeton area through WeChat and seminars held at the Princeton Public Library. The state alleges he falsely claimed to hold a Ph.D. from Columbia University and promised annual returns of 10% to 22%.

The lawsuit alleges that Hu diverted at least $280,000 in investor funds for personal expenses, including a Florida home, vacations, and his children’s private school and college tuition.

The state is seeking restitution for investors, civil penalties, and a permanent ban preventing Hu from offering or selling securities in New Jersey. Hu was also indicted by a state grand jury in February on charges including securities fraud, theft by deception, money laundering, and misconduct by a corporate official.