The Ontario Securities Commission (OSC) ruled on Friday that China-based timber company Sino-Forest Corp., which was formerly listed on the Toronto Stock Exchange (TSX), engaged in fraudulent practices.
The ruling upheld almost all of the regulator’s allegations against the company and several of its top executives, including the company’s co-founder, chairman and CEO, Allen Chan.
Securities Commission staff had previously alleged that Sino-Forest and its executives perpetrated one of the largest corporate frauds in Canadian history. Specifically, it was alleged that the firm fraudulently overstated its timber assets and revenue and made materially misleading statements in its public discourse.
The OSC also accused Chan of fraud in connection with the firm’s purchase of a controlling interest in another forestry company and it alleged that the five executives mislead OSC investigators.
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