Sino-Forest CEO Quits Amid Fraud Allegations

Allan Chan has stepped down as chairman and CEO of Sino-Forest Corp., after fraud allegations published two months ago by short seller Muddy Waters LLC, reports the Wall Street Journal.


Chan had planned to resign before the Ontario Securities Commission on Friday ordered a 15-day trading halt for the company's shares.


The commission issued the order after saying regulators had found that the company may have "misrepresented some of its revenue and/or exaggerated some of its timber holdings." The commission said the company, through its subsidiaries, also "appears to have engaged in significant non-arm's-length transactions which may have been contrary to Ontario securities laws and the public interest."


Sino-Forest claims the commission's allegations are "unproven" but "of a serious nature." The company said it is cooperating with regulators, says the Journal.


Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern