SEC Sues Chinese Coal Execs For Secret Sale To PE Firm

Law360, New York (February 24, 2012, 5:47 PM EST) -- Federal regulators on Friday accused two executives of a New York Stock Exchange-listed Chinese coal company of secretly stealing the company's assets and selling them to a Chinese private equity firm, then misleading U.S. investors in a $100 million initial public offering.

The U.S. Securities & Exchange Commission's suit, filed in New York federal court, claims that Puda Coal Inc. board chairman Ming Zhao transferred a controlling interest in the company's coal mines to himself, then sold it to Citic Trust Co. Ltd., the private equity...
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