SEC Sues NJ Consultant Over Chinese Reverse Mergers

Law360, New York (December 11, 2012, 8:52 PM EST) -- The U.S. Securities and Exchange Commission on Tuesday hit a New Jersey-based consultant with a lawsuit alleging he defrauded investors and violated securities law while helping Chinese companies go public in the U.S. through reverse mergers.

The SEC claims Huakang “David” Zhou used his consulting firm Warner Technology & Investment Corp. to bring 20 Chinese companies into the U.S. capital market, then allowed several to fail after collecting millions in consulting fees. His purported securities violations and fraud took place between 2007 and 2010.

His conduct...
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