OSC launches case against Sino-Forest, execs
2012-05-22 21:03 ET - Street Wire
Also Street Wire (C-TRE) Sino-Forest Corp
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by Mike Caswell
The Ontario Securities Commission has launched its anticipated case against Sino-Forest Corp., claiming that the company and six of its senior employees fraudulently inflated the forester's value during a six-year scheme. Citing "fundamentally flawed" transactions worth billions of dollars, the OSC says that Sino-Forest's China-based managers overstated the assets and revenue of the company by using a complex network of offshore entities. Management also actively misled both the public and later the OSC as it started investigating.
The OSC action comes almost a year after Sino-Forest collapsed in the wake of a report by short-seller Carson Block. The report contended that the company had massively exaggerated its assets and had "always been a fraud." The stock fell to $5.23 in the days after the report, down from $18.21. (The Toronto Stock Exchange has since delisted the company, but it continued trading on the OTC Bulletin Board until Oct. 24, 2011, where it was last at $1.37.)
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if the bcsc and osc had done their job in the first place this alleged fraud would not have taken place
once again the regulators have failed us by chasing fire engines and pretending the little guys are bad instead of knowing when the real potential criminals are ruining everyone
Posted by birdcat at 2012-05-23 01:30
if the bcsc and osc had done their job in the first place this alleged fraud would not have taken place
once again the regulators have failed us by chasing fire engines and pretending the little guys are bad instead of knowing when the real potential criminals are ruining everyone
Posted by birdcat at 2012-05-23 01:31
WOW ! Five Billion $ in shareholder equity down the toilet and they "may" get a Million $ fine ! That'll TEACH 'EM ! And is the $ going bsck to the shareholders ? Sounds like a big X-mas bonus for the OSC !
Posted by Gregarious at 2012-05-25 14:41
FFGG says: "Look out below!"
Posted by Fabulous Flying Geologist's Ghost at 2012-05-28 11:29
Do you think that the OSC have the slightest chance of ever making good on their responsibilities to regulate this type of mess..and if found guilty where do you think you should look for those responsible..China? Good luck..What about the accountants who signed off on the accounts and the stockbrokers who were recommending the stock...I do not always agree with tho SEC BUT AT LEAST THEY HAVE SOME INTESTINAL FORTITUDE unlike our pathetic regulators.Once again the public suffers and is left holding the empty bag.
Posted by F Hall at 2012-05-28 17:26
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