Former Sino-Forest CEO denies role Ontario Securities Commission alleges he played in company’s collapse

By Alexandra Posadzki
The Globe and Mail
November 27, 2017
Category: Business & Politics
Region: Canada, Canada East

Sino-Forest Corp. co-founder Allen Chan said he is sorry that the company’s shareholders lost billions of dollars, but he “respectfully disagrees” with the Ontario Securities Commission’s ruling that his actions led to the forestry company’s demise. The OSC ruled in July that Mr. Chan and three other senior executives – Albert Ip, Alfred Hung and George Ho – engaged in “deceitful or dishonest conduct” relating to the company’s standing timber assets and revenue that they knew constituted fraud. …Mr. Chan said he believes the company’s implosion resulted from a series of actions that were not taken during a two-month period when he was discouraged from exercising his CEO duties. On June 2, 2011, short-seller Muddy Waters released a research report alleging that Sino-Forest was a Ponzi scheme and had massively exaggerated its assets. 

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