SEC hits China petro firm with fraud suit

China North East Petroleum Holdings and company executives were sued by the US Securities and Exchange Commission over claims that offering proceeds were fraudulently diverted to insiders' personal accounts.

The US government claimed in a complaint filed yesterday in Manhattan federal court that insiders made US$59 million without proper disclosures.

Starting in 2009, Wang Hongjun, CNEP's president and chief executive, and a company founder, Ju Guizhi, engaged in "numerous undisclosed, related-party transactions" involving the company, the SEC said.

via Business feed http://www.scmp.com/business/commodities/article/1094771/sec-hits-china-petro-firm-fraud-suit