Friday, November 21st2.3°C
24124

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

20759


Recent Trending




Today's Market
S&P TSX15121.09+45.91
S&P CDNX792.538.96
DJIA17841.97122.97
Nasdaq4726.693+24.826
S&P 5002066.28+13.53
CDN Dollar0.8901+0.0059
Gold1204.60+13.70
Oil76.22+0.37
Lumber331.50+4.50
Natural Gas4.333-0.156

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26-0.01
Cantex0.035-0.005
Anavex Life Sciences0.165-0.005
Metalex Ventures0.03+0.005
Russel Metals31.58+0.78
Copper Mountain Mining2.29+0.11
Colorado Resources0.14+0.01
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.33-0.005

 
23744




FEATURED Property
2134406Amazing resort-style condo - Tuscany Villas!
$253,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24156

24156


Member of BC Press Council


22842