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.
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