Ontario regulator says Sino Forest executives have to pay C$64 million

Amrita Global Development

11/07/2018 15:20

July 11 (Reuters) - Sino Forest Corp's top executives have
to pay the Ontario Securities Commission about C$64 million
($48.92 million), the regulator said, a year after it alleged
the company of overstating its assets.
    The regulator also permanently prohibited former chief
executive officer, Allen Chan, who will pay C$60 million, and
executives Albert Ip, Alfred Hung, George Ho and Simon Yeung 
from trading or buying securities.
     The regulator's decision comes after the Ontario Superior
Court found earlier in March that Chan engaged in fraud, breach
of fiduciary duty, and negligence. The court awarded plaintiffs
$2.63 billion in a civil case against Sino Forest.  urn:newsml:reuters.com:*:nL3N1QX2KF
    The executives also have to pay an administrative penalty of
more than C$11 million and costs of about C$5 million, the
regulator said in a statement dated July 9, but released on
Wednesday.
    Sino-Forest was a publicly traded company listed on the
Toronto Stock Exchange, before short seller Muddy Waters LLC
published a report in 2011 accusing the company of being a Ponzi
scheme riddled with fraud, theft and undisclosed related-party
transactions. urn:newsml:reuters.com:*:nL3N1QX2KF
    Between 2007 and 2010, the company raised more than $2.1
billion and C$800 million in Canada's debt and capital markets.
    Sino-Forest's collapse became the symbol for a series of
offshore-listed Chinese firms accused of similar fraud that
subsequently collapsed, including most recently China Huishan
Dairy Holdings  6863.HK .

($1 = 1.3082 Canadian dollars)

 (Reporting by John Benny in Bengaluru; Editing by Bernard Orr)
 ((John.Benny@thomsonreuters.com; +1 646-223-8780; Reuters
Messaging: John.Benny.thomsonreuters.com@reuters.net))