SEC Demands $16 Million in Fraud Case of Former Soyo CFO
Nancy Shao Wen Chu, former chief financial officer of Soyo Group Inc. (SOYO), was ordered to pay $15.6 million to resolve securities fraud charges, according to the U.S. Securities and Exchange Commission.
Chu was accused by the SEC of inflating reported revenue at Soyo, a now-defunct Ontario, California-based electronics distributor, by booking more than $47 million in fictitious sales in 2007 and 2008, the agency said today in a statement. Eric Jon Strasser, a consultant the agency said was involved in two fraudulent Soyo SEC filings, was ordered to pay $260,000.
False reports of 120 sales transactions and a $6 million debt-for-equity transaction with a vendor misled investors, bankers and auditors about Soyo’s financial health and lifted its stock price, the SEC said. Soyo filed for Chapter 7 bankruptcy in 2009.
The SEC said neither Chu nor Strasser responded to the initial complaint. Telephone listings under Chu’s name in Ontario and for an Eric J. Strasser in Chino Hills, California, were no longer in service.