Defendant Name:
AgFeed Industries, Inc.
Defendant Type:
Public Company
Document Reference:
2014-47
Document Details
Legal Case Name
SEC v. AgFeed Industries, Inc., Junhong Xiong, Selina Jin, Songyan Li, Shaobo Ouyang, Edward J. Pazdra, and K. Ivan Gothner
Document Name
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
Document Date
11-Mar-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 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.
Other Defendants in Action:
