China Commercial Says $1.1 Million Transferred Without AuthorityDarren Boey
China Commercial Credit Inc., a micro credit firm listed in the U.S., said about $1.1 million had been transferred without authorization from a subsidiary to the personal account of a former executive officer.
The official, who wasn’t named, was an executive officer at the time of the transfer, China Commercial Credit said in a Securities and Exchange Commission filing on Sept. 12. The funds were to be used to increase the registered capital account of an affiliate controlled by the subsidiary Wujiang Luxiang Information Technology Consulting Co., the filing showed.
China Commercial Credit, based in the eastern province of Jiangsu, was suspended from Nasdaq Stock Market trading on Sept. 11. The stock, which has tumbled 60 percent this year, will remain halted until the company has “fully satisfied” a Nasdaq request for more information, China Commercial Credit said.
The company raised $8.9 million from selling shares in its August 2013 initial public offering at $6.50 apiece. The stock, which last traded at $2.98, is now valued at $36.5 million.
Calls to the Wujiang city office and cell phone of Long Yi, China Commercial Credit’s chief financial officer and interim chief executive officer, weren’t answered. The cell phone of former CEO Qin Huichun was turned off.
Qin resigned as CEO on Aug. 21, according to an SEC filing the following day that didn’t give any reason for the move. He also quit from the boards of subsidiaries including Wujiang Luxiang Information Technology, according to the filing.