Sino-Forest reviewing Canadian regulator's fraud allegations

Sino-Forest said in a press release last night that it is reviewing allegations by the Ontario Securities Commission OSC that it engaged in widespread fraud dating back to at least 2006.

On Tuesday, Canadian regulators accused the company and several of its former executives Allen Chan, Albert Ip, Alfred Hung, George Ho and Simon Yeung of conducting “a complex fraudulent scheme to inflate the assets and revenue of Sino-Forest and made materially misleading statements in Sino-Forest’s public disclosure record related to its primary business”.

The OSC is considering whether it would be in the public interest to permanently halt the trading of Sino-Forest shares, impose an administrative...