SEC Accuses China’s Yuhe of Falsely Claiming AcquisitionAndrew Zajac
Yuhe International Inc., a Chinese company that supplies chickens to broiler farms in China, was sued for fraud by the U.S. Securities and Exchange Commission and accused of telling investors it made a $15 million acquisition that never happened.
The agency also sued Gao Zhentao, the Weifang, China-based company’s founder and chairman, today in federal court in Washington.
The announced acquisition was questioned in a June 13, 2011, report by GeoInvesting LLC, a Skippack, Pennsylvania investment firm, and days later the company acknowledged that it “had never been completed,” according to the complaint.
“Yuhe misled its public investors by disseminating a series of materially false statements concerning a purported acquisition for more than $15 million,” the agency said in the suit.
The case is SEC v. Yuhe International Inc., 13-cv-01598, U.S. District Court, District of Columbia (Washington).