TORONTO (Reuters)—Sino-Forest, the Chinese forestry company whose stock collapsed after a short-seller's fraud accusations, said on Monday [April 9] that Canada's top securities regulator found that its conduct ran afoul of sections of securities law pertaining to fraud.
The Ontario Securities Commission made its findings known to Sino-Forest by serving the Toronto-listed company and some of its current and former executives with enforcement notices, the company said in a statement.
Sino-Forest provided few details about the notices but said the matters in question were "of a serious nature." It signaled the OSC was considering formal allegations pertaining to false or misleading statements and possible fraud.
The case is the most prominent among a spate of accounting scandals that have tainted the image of Chinese companies listed in North America. The accusations have prompted trading halts, delistings, lawsuits and regulatory probes in both the United States and Canada.