Reality Check: Criminal Actions Against Chinese Cos.?
October 19, 2011, 2:14 PM EDT
Law360, New York (October 19, 2011, 2:14 PM EDT) -- Robert Khuzami, director of enforcement at the U.S. Securities and Exchange Commission, recently let slip in an interview that the U.S. Department of Justice is actively engaged in investigating the accounting practices of Chinese companies listed on U.S. stock exchanges. This comment raises the possibility that the DOJ may be considering bringing criminal charges against some of these China-based companies, their officers or their directors.
But the DOJ faces formidable procedural and jurisdictional challenges in actually prosecuting an action against entities or individuals located in China,...