Friday, 26 December 2014
Last updated 2 days ago
Aug 29 2011 | 2:07pm ET
The Ontario Securities Commission has ruled that Chinese timber company Sino-Forest may have defrauded investors—like hedge fund manager John Paulson—by exaggerating its assets.
The OSC stopped all trading in Sino-Forest shares on Friday, saying the company "appears to have engaged in significant non-arm’s length transactions which may have been contrary to Ontario securities laws and the public interest,” reports the CBC.
The regulator accuses officers and directors at the company of "engaging or participating in acts…which they know…perpetuate a fraud."
The OSC originally ordered the company’s directors and executives to resign, says the CBC, but at midday on Friday, issued a second release removing that demand. OSC spokesperson Wendy Day told the Canadian broadcaster the commission was “persuaded” to rescind the resignation order but didn’t say who did the persuading.
The decision validates the views of U.S. short seller and research firm Muddy Waters which called out Sino-Forest as a giant fraud in June. Since the release of the Muddy Waters report, Sino-Forest’s value has plummeted to C$700 million from C$4.7 billion.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.