SEC Says Chinese Oil Co. Execs Skimmed Millions For Families

Law360, Wilmington (November 30, 2012, 8:51 PM EST) -- The U.S. Securities and Exchange Commission on Thursday sued China North East Petroleum Holdings Ltd.’s top brass for fraud in New York federal court, alleging they siphoned millions from stock offerings for themselves and family members and profited from other dubious corporate transactions.

CNEP’s president and CEO, Wang Hongjun, his mother and CNEP founder Ju Guizhi, and another official diverted nearly $7 million from two stock offerings in 2009 after the company “falsely stated” to investors that the proceeds would be used for working capital and...
To view the full article, register now.