Defendant Name: AgFeed Industries, Inc.

Defendant Type: Public Company
SIC Code: 200
CUSIP: 00846L10

Initial Case Details

Legal Case Name SEC v. AgFeed Industries
First Document Date 11-Mar-2014
Initial Filing Format Civil Proceeding
Case Number 14-cv-00663
Allegation Type Issuer Reporting and Disclosure
Federal District Court Tennessee, Middle District of Tennessee

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a) (Not specified)
Additionally, K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
K. Ivan Gothner is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Edward J. Pazdro is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Edward J. Pazdro is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 12b-20 of the Exchange Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
K. Ivan Gothner is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Edward J. Pazdro is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Sec 13(a) of the Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-1 of the Exchange Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-11 of the Exchange Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Edward J. Pazdro is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Rule 13a-13 of the Exchange Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(b)(2)(A) of the Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(b)(2)(A) of the Exchange Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(b)(2)(B) of the Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 13(b)(2)(B) of the Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 17(a) (Not specified) of the Securities Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 17(a) (Not specified) of the Securities Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Sec 17(a) (Not specified) of the Securities Act.
K. Ivan Gothner is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
K. Ivan Gothner is alleged to have controlled AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Selina Jin is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Selina Jin is alleged to have controlled AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Songyan Li is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Songyan Li is alleged to have controlled AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Shaobo Ouyang is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Edward J. Pazdro is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Edward J. Pazdro is alleged to have controlled AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Junhong Xiong is alleged to have aided and abetted AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act.
Junhong Xiong is alleged to have controlled AgFeed Industries, Inc. 's violation of Section 13(b)(2) Exchange Act .

Resolutions

First Resolution Date 15-Sep-2014
Headline Total Penalty and Disgorgement $18,105,000

Related Documents:

2014-47 11-Mar-2014 Press Release--Civil Action
SEC Charges Animal Feed Company and Top Executives in China and U.S. With Accounting Fraud; U.S.-Based Audit Committee Chair Charged for Complicity in Scheme
On March 11, 2014, the SEC charged AgFeed Industries Inc. ("AgFeed") and eight top executives with conducting a massive accounting fraud in which they repeatedly reported fake revenues from their China operations in order to meet financial targets and prop up the stock price. According to the SEC's complaint, AgFeed's China operations kept two sets of accounting books and caused AgFeed to report false revenues of approximately $239 million. The U.S. management learned of the accounting fraud by early June 2011 but failed to take adequate steps to investigate and disclose it to investors. AgFeed consented to an SEC order pursuant to Section 12(j) of the Exchange Act that revokes the registration of each class of its securities. The SEC's case against AgFeed in federal court, which charges AgFeed with violating the antifraud, reporting, books and records, and internal controls provisions of the federal securities laws, is continuing.
comp-pr2014-47 11-Mar-2014 Complaint
Complaint
On March 11, 2014, the SEC charged AgFeed Industries, Inc. with reporting false revenues from its China operations form 2008 through mid-2011. According to the Commission, the fraud caused AgFeed's reported revenues to be inflated by $239 million over the period in question; "on an annual basis, the fraud caused overstated revenue ranging from approximately 71% to 103%."
2014-194 15-Sep-2014 Press Release--Civil Action
Tennessee-Based Animal Feed Company Agrees to Pay $18 Million to Settle Accounting Fraud Case
On September 15, 2014, the SEC announced that AgFeed settled an enforcement action based on alleged accounting fraud undertaken by the company. AgFeed agreed to pay $18 million in illicit profits.
court_doc70_14-cv-00663 06-Oct-2014 Court Docket Document
Final Judgment as to Defendant AgFeed Industries, Inc.
On October 3, 2014, Federal District Judge William Joseph Haynes entered final judgment against AgFeed Industries, Inc. pursuant to the consent of AgFeed Industries.

Other Defendants in Action:

K. Ivan Gothner
Selina Jin
Songyan Li
Shaobo Ouyang
Edward J. Pazdro
Junhong Xiong

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