Former Sino-Forest CFO settles with Ontario Securities Commission in fraud case

MarketsAssociated Press

The former chief financial officer of Sino-Forest Corp. has agreed to pay $6.3 million and testify against other former executives of the China-based forestry company which collapsed under allegations of massive fraud.

David Horsley said Monday that he will also pay $700,000 in a settlement with the Ontario Securities Commission, which has cases pending against several other former Sino-Forest senior executives.

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Most of the money, $5.6 million, will be paid to settle class action suits in Ontario and the U.S. brought by investors in Sino-Forest.

Sino-Forest was once Canada's most valuable publicly traded forestry business, but shares plunged two years ago after short-seller Muddy Waters Research alleged the company exaggerated its assets.