China Mediaexpress Accused by SEC of False Financial Statements

China MediaExpress Holdings Inc., a supplier of television advertising services on buses, was accused by the U.S. Securities and Exchange Commission of falsifying its financial statements.

The Fuzhou, China-based company misrepresented its customer relationships with PepsiCo Inc. (PEP) and Apple Inc. (AAPL), and “maintained and created forged bank statements that grossly overstated its true cash balances,” according to a complaint filed today in federal court in Washington.

The Nasdaq stock market delisted China Media’s shares in May 2011 and the SEC deregistered the company’s securities in August.

The complaint also names China MediaExpress’s chief executive officer, Zheng Cheng, and seeks to bar him from serving as an officer or director of any U.S. publicly traded company.

The case is Securities and Exchange Commission v. China MediaExpress Holdings Inc., 13-cv-00927, U.S. District Court, District of Columbia (Washington).

To contact the reporter on this story: Andrew Zajac in Washington at azajac@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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