On September 29, 2014, the SEC filed a complaint against China Valves Technology, Inc., and three of its senior officers in federal district court in the District of D.C. The complaint alleges that "[d]efendants misled investors about the true nature and price of [the company's] 2010 acquisition of Changsha Valve. In addition, in 2011, [the company] mischaracterized and materially overstated income and understated liabilities incurred by a wholly-owned subsidiary."

On May 13, 2015, Federal District Judge Reggie B. Walton entered final judgement against China Valves Technology, Inc. pursuant to the consent of China Valves Technology, Inc.

On May 20, 2015, the SEC announced that on May 13, 2015, the U.S. District Court for the District of Columbia entered final judgment against China Valves Technologies, Inc., in addition to its former chairman and CEO and its CFO. According to the SEC: "China Valves, Fang, Tang, and Jianbao Wang, China Valves's former CEO, intentionally misled investors about the nature of China Valves's 2010 acquisition of Watts Valve Changsha Co., Ltd. in an effort to mask the subsidiary's prior investigation of violations of the Foreign Corrupt Practices Act and China Valves's decision to pay sales commissions to employees that potentially violated the FCPA."