This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has reached a settlement with Luis Chang, a New Jersey man the regulator charged over a bogus takeover offer for Allied Nevada Gold Corp. in January, 2014. The SEC said that Mr. Chang, 51, issued a news release announcing a $750-million offer for Allied Nevada, with the purported buyer being a $15-billion Chinese company. (All figures are in U.S. dollars.) He then sold millions of shares he had previously acquired, according to the regulator.

Details of Mr. Chang's settlement, including the size of any fines, are not yet available, as the SEC commissioners still must approve the deal. The SEC previously calculated the dollar value of the shares he sold at $7-million. If the case had gone to court, the regulator would have sought disgorgement of his gains and an appropriate civil penalty.

The settlement comes a little over one year after the purported Allied Nevada takeover bid. On Jan. 14, 2014, a news release purportedly from a company called China Gold Stone Mining Development Ltd. stated that China Gold would acquire Allied Nevada for $7.50 a share. The price was a substantial premium to Allied Nevada's previous close of $4.31. At least some investors appeared to have accepted the offer as genuine, with Allied Nevada climbing above $5 on news of the bid. The company traded 17.6 million shares the day of the news release.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS