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by Mike Caswell

The U.S. Securities and Exchange Commission has won a 10-year ban and a $150,000 fine against James Crane, the former chief financial officer of Subaye Inc., a collapsed Chinese Nasdaq listing. (All figures are in U.S. dollars.) The SEC said that Mr. Crane was the company's CFO when it had a business that was almost entirely imaginary. Among other things, the company falsely claimed to have $39-million in revenue and 1,539 employees, but almost none of that existed, according to the SEC.

Mr. Crane's penalty comes five months after Subaye's Ontario auditors accepted fines and suspensions for their role in the scheme. The SEC said that the auditors, Bryce Walker and Spence Walker, failed to exercise professional skepticism in their examinations of the company. Among other things, they did not discover that the company's income was vastly overstated and that it had almost no paying customers, the SEC said.

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James Crane

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