SEC Sues AMG Prez Over Alleged Fake Invoice Scheme

Law360, New York (June 9, 2010, 7:18 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday accused the former president of foam manufacturer Advanced Materials Group Inc. of cooking the company’s books to siphon hundreds of thousands of dollars to fund his lavish lifestyle.

In a complaint filed in the U.S. District Court for the Northern District of Texas, the SEC alleged that former President and Chief Financial Officer William G. Mortensen and former accounting manager Feng "Eric" Zheng had fraudulently inflated AMG’s publicly reported financial results through 2008 and 2009.

Mortensen, who joined...
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