On Monday, the Securities and Exchange Commission charged the China-based oil-services company, Sinotech Energy Ltd ADR (PINK:CTESY). and its top executives with allegedly lying about the company’s assets and use of its $120 million IPO proceeds.
In 2010, Sinotech Energy Ltd ADR (PINK:CTESY) went public with an offering priced at $8.50. It didn’t fare very well with the stock dropping 19 percent; it has continued to lose its value. Today, the stock is listed as a pink sheet company, CTESY, and is trading at 0.027.
In a separate charge, SinoTech’s chairman has been accused of stealing $40 million from the company last summer through the corporate bank account according to The Wall Street Journal.
The SEC has alleged that SinoTech “grossly overstated” its primary
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