Wednesday, August 27th31.7°C
23003
22588

OSC to hold hearing on settlement agreement with former Sino-Forest executive

TORONTO - The Ontario Securities Commission has reached a proposed settlement with the former chief financial officer of Chinese forestry company Sino-Forest Corp., which collapsed under allegations of being a massive fraud.

David Horsley is accused of not complying with Ontario securities law and acting contrary to the public interest.

Details of the tentative settlement will not be made public unless it is approved at a hearing on July 21.

The allegations against Horsley were first brought by the Ontario regulator in the spring of 2012.

Horsley stepped down as chief financial officer at Sino-Forest in April 2012 and parted ways with the company in September 2012.

Five other executives — Allen Chan, Albert Ip, Alfred C.T. Hung, George Ho and Simon Yeung — are also accused of lying to investors and misleading investigators by engaging in a "complex fraud scheme to inflate the assets and revenue of Sino-Forest," according to OSC documents.

The OSC said a hearing will be held in September regarding the other five accused.

From June 2006 to March 2011, the Toronto-listed forestry company saw its stock price soar by 340 per cent from $5.75 a share, to $25.30. At its peak, Sino-Forest's market capitalization was worth more than $6 billion.

But in 2011, Sino-Forest was accused of being a fraud by U.S. firm Muddy Waters Research, prompting investigations by the OSC and the RCMP. The allegations sent the company's share price plummeting.

A year later, the company said that investors should no longer rely on the accuracy of its previous financial statements or audit reports.

Its auditors resigned in April 2012. A month later, the company's shares delisted on the Toronto Stock Exchange.

Last year, the Ontario Superior Court approved a $117-million class-action settlement involving Sino-Forest and its former auditor, Ernst & Young. The agreed deal saw the accounting firm pay towards into a fund to compensate shareholders after the firm was accused of fraudulently overstating its assets.

The Canadian Press


Read more Business News

22625


Recent Trending




Today's Market
S&P TSX15602.65-16.56
S&P CDNX1019.343.98
DJIA17122.0115.31
Nasdaq4569.622-1.015
S&P 5002000.12+0.10
CDN Dollar0.9204+0.0075
Gold1281.70-2.1001
Oil93.83-0.03
Lumber347.10-2.10
Natural Gas3.974+0.063

 
Okanagan Companies
Pacific Safety0.20+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.07+0.005
Anavex Life Sciences0.24-0.01
Metalex Ventures0.08+0.005
Russel Metals36.60-0.02
Copper Mountain Mining2.96-0.07
Colorado Resources0.18+0.005
ReliaBrand Inc0.115+0.02
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.24-0.01

 



23015

FEATURED Property
2049262Walk to the Beach! Own a piece of Waterscapes for $325,000
$325,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...


What is a journey without a destination?

Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...


Joint accounts: what you need to know!

Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...

_



22854




Member of BC Press Council


22837