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).
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Comedian Byron Allen Buys the Weather Channel for $300 Million
- Stocks Drop Most in Six Weeks on Trade War Tension: Markets Wrap
- Stocks Extend Losses as Volatility Increases: Markets Wrap
- World's Biggest Cryptocurrency Exchange Is Heading to Malta
- YouTube Bans Firearms Demo Videos, Entering the Gun Control Debate