Blog Posts Tagged With Corporate and Other Issues

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In re Eastgate Biotech Corporation (A.P. Dec. 11, 2018, Settled)

Action against Respondent, a pharmaceutical company, for alleged violation of interim financial review requirements of Regulation S-X.  According to the SEC, Respondent filed three Forms 10-Q that included financial statements that had not been reviewed by an independent public accounting firm.  Respondent has agreed to a cease-and-desist order.  The SEC did not impose a civil penalty based on Respondent’s demonstrated inability to pay.

SEC Order
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In re Agria Corporation (A.P. Dec. 10, 2018, Settled)

Action against Respondent, an agricultural company, for alleged fraudulent accounting related to a 2010 divestiture.  According to the SEC, Respondent materially overstated the value of consideration received from the divestiture, thereby underreporting the loss it incurred on the transaction.  Respondent has agreed to pay a civil penalty of $3 million.

SEC Order 

SEC Press Release
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In re Lai Guanglin (Alan) (A.P. Dec. 10, 2018, Settled)

Action against Respondent, an executive chairman of an agricultural company, for alleged scheme to manipulate the market price of the company’s American Depositary Shares (“ADSs”).  According to the SEC, Respondent used brokerage accounts to engage in trading to inflate the company’s ADS price and made materially misleading statements about the company’s compliance with a New York Stock Exchange listing standard.  Respondent has agreed to a five-year officer-and-director bar and to pay a civil penalty of
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In re Vantage Drilling International (A.P. Nov. 19, 2018, Settled)

Action against Respondent, a drilling company, for alleged violations of the FCPA’s internal accounting control provisions by its predecessor, Vantage Drilling Company (“VDC”). The SEC alleges that VDC failed to implement an adequate system of internal controls and, as a result, made payments to a former outside director that the former director may have used to bribe foreign officials. Defendant has agreed to pay disgorgement of $5 million.

SEC Order

SEC Administrative Summary
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In re Paragon Coin, Inc. (A.P. Nov. 16, 2018, Settled)

Action against Respondent, a company established to implement blockchain technology in the cannabis industry, for an alleged unregistered offering. According to the SEC, Defendant publicly offered and sold digital tokens to raise capital without registering the offering or attempting to qualify for an exemption to the registration requirements.  Defendant has agreed to pay a civil penalty of $250,000.

SEC Press Release

SEC Order
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In re CarrierEQ, Inc., d/b/a Airfox (A.P. Nov. 16, 2018, Settled)

Action against Respondent, a mobile technology business, for an alleged unregistered offering.  According to the SEC, Defendant publicly offered and sold digital tokens to raise capital without registering the offering or attempting to qualify for an exemption to the registration requirements.  Defendant agreed to pay a civil penalty of $250,000.

SEC Press Release

SEC Order
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In re Pyxus International, Inc. (formerly known as “Alliance One International, Inc.”) (A.P. Nov. 9, 2018, Settled)

Action against Respondent, a tobacco company, for alleged financial misstatements. According to the SEC, Respondent’s subsidiary, Alliance One Tobacco (Kenya) Ltd., maintained inadequate accounting controls that resulted in overstatements of inventory, accounts receivable, and retained earnings.  Respondent agreed to cease and desist from violations of the Securities and Exchange Act of 1934.  The SEC noted Respondent’s prompt remedial actions and cooperation in its order.

SEC Order

SEC Administrative Summary
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