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 Ontario Securities Commission has delivered a ruling after a lengthy hearing into the collapse of Sino-Forest Corp., finding against the company and its management. The regulator has determined that Sino-Forest and its management deceived investors for years about the company's financial condition. Among other things, Sino-Forest reported assets that it did not own and sales contracts that had no economic substance.

The case arose 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.)

Friday's decision follows a 188-day hearing that ran for parts of three years. Sino-Forest did not attend, but five of its former executives did. In all, 10 lawyers appeared at the hearing before three OSC commissioners.

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