by The Compliance Exchange on April 24, 2012
From New York Times:
The Securities and Exchange Commission has sued another China-based company and two of its executives, charging them with lying to investors about the value of the company’s assets and how it used $120 million in proceeds from its initial public offering on the Nasdaq.
In a complaint filed on Monday in a federal court in Louisiana, the S.E.C. also charged that the chairman of the company, SinoTech Energy, secretly siphoned $40 million from the company’s account at the Agricultural Bank of China last summer.
The legal action against SinoTech, an oil field services company de-listed by the Nasdaq in January, is the latest example of a continuing crackdown on accounting fraud and other financial crimes at Chinese companies listed in the United States.
Read more here.