SEC Charges SinoTech, 2 Executives With Misleading Investors


U.S. securities regulators on Monday charged the China-based oilfield services company SinoTech Energy Ltd and two senior officers with misleading investors about the company's asset values and its use of $120 million from the proceeds of its initial public offering.

The Securities and Exchange Commission's civil suit, filed in a U.S. district court in Louisiana, alleges that SinoTech Chief Executive Officer Guoqiang Xin and former Chief Financial Officer Boxun Zhang were responsible for the alleged fraud.

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The SEC also charged the company's chairman, Qinzeng Liu, saying that he stole $40 million from a SinoTech bank account.