China Sky One, chief executive charged with securities fraud: US
September 6, 2012, 12:00 pm TWN
WASHINGTON -- The U.S. Securities and Exchange Commission (SEC) charged China Sky One Medical Inc. and its chief executive with securities fraud and said the company recorded fake sales of a weight-loss product.
China Sky One inflated revenues in its financial statements by booking US$19.8 million in phony export sales, the SEC said.
The company, based in China, said in 2007 securities filings it had entered into a distribution agreement with a Malaysian company that would generate the sales, but never entered into such an agreement, the SEC said on Tuesday.
The company's chief executive, Yan-qing Liu, certified the overstated financial results, which appeared in financial statements through 2010, the SEC said.