Defendant Name: AgFeed Industries, Inc.

Defendant Type: Public Company

Document Reference: 2014-194

Document Details

Legal Case Name SEC v. AgFeed Industries, Inc., Junhong Xiong, Selina Jin, Songyan Li, Shaobo Ouyang, Edward J. Pazdro, and K. Ivan Gothner
Document Name Tennessee-Based Animal Feed Company Agrees to Pay $18 Million to Settle Accounting Fraud Case
Document Date 15-Sep-2014
Document Format Civil Proceeding
Case Number 14-cv-00663
Federal District Court Tennessee, Middle District of Tennessee
Allegation Type Issuer Reporting and Disclosure
Document Summary 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.

Disgorgement & Penalty Information

Resolutions
Injunction
Enjoinment

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%."
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.

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