SEC Accuses Puda Coal Execs Of Looting Co.

Law360, New York (February 22, 2012, 2:30 PM EST) -- U.S. securities regulators on Wednesday accused two Puda Coal Inc. executives of looting their company and swindling investors by telling them they were investing in a Chinese coal business when they were actually investing in an empty shell company.

In a suit filed in Manhattan federal court, the U.S. Securities and Exchange Commission said Puda Chairman Ming Zhao and former CEO Liping Zhu conspired to secretly transfer their company's only revenue-producing asset — a coal mining company called Shanxi Puda Coal Group — to Zhao in...
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