The Securities and Exchange Commission’s Division of Enforcement today charged China-based Longtop Financial Technologies Limited with failing to file current and accurate financial reports with the SEC.
The SEC’s Division of Enforcement alleges that Longtop failed to comply with its reporting obligations because it failed to file an annual report for its fiscal year that ended March 31, 2011. Furthermore, Longtop’s independent auditor stated in May 2011 that its prior audit reports on Longtop’s financial statements contained in annual reports for 2008, 2009 and 2010 should no longer be relied upon.
Under Section 12(j) of the Securities Act of 1934, the SEC is authorized to bring administrative proceedings to determine whether to revoke or suspend the registration of a security if a public company fails to comply with the federal securities laws.
“We are taking this action to protect investors because it appears there is no current and reliable information available to the investing public about Longtop,” said Antonia Chion, Associate Director of the SEC’s Division of Enforcement.
If the administrative law judge overseeing the proceeding revokes the registration of Longtop’s securities, no broker-dealer may execute any trades in those securities. Revocation also would abolish Longtop as a public shell company so that it could not be sold and used as a vehicle for future fraud.
According to the order instituting the administrative proceeding, Longtop’s American depositary shares were listed and traded on the New York Stock Exchange under the symbol LFT beginning in October 2007 after an initial public offering. On Aug. 29, 2011, the NYSE delisted LFT, finding that the American depositary shares were no longer suitable for continued listing and trading. Currently, Longtop’s American depositary shares trade in the over-the-counter market under the ticker symbol “LGFTY.”
In this litigated administrative proceeding, Longtop will have an opportunity to refute the SEC Enforcement Division’s allegations. The administrative law judge will then determine whether the allegations are true and whether the registration of Longtop securities should be suspended for a period not exceeding 12 months or revoked altogether. Longtop is required to file periodic reports with the SEC until a final decision is made in this proceeding.
The SEC previously filed a subpoena enforcement action against Deloitte Touche Tohmatsu CPA Ltd. in Shanghai for failing to produce documents related to the SEC’s investigation into possible fraud by Longtop, the audit firm’s longtime client.
The SEC’s investigation, which is continuing, has been conducted by Helaine Schwartz, Avron Elbaum, Lisa Deitch, and Jonathan Cowen of the SEC’s Division of Enforcement. The SEC’s litigation will be led by Mark Lanpher of the Division’s Trial Unit.
trial unit, u.s. securities and exchange commission, division of enforcement, securities and exchange commission, sec enforcement division, helaine schwartz, jonathan cowen, avron elbaum, antonia chion, lisa deitch, mark lanpher, shanghai, china, new york stock exchange, deloitte touche tohmatsu cpa ltd., longtop financial technologies limited, filings the securities and exchange commission, financial regulation, finance, corporate crime, business, securities act, administrative law judge, independent auditor, director, nyse euronext
News: First Derivatives Launch of Swap Execution Facility Initiative & Appointment of Chief Compliance Officer
839 days ago,(2013/03/18) - First Derivatives
First Derivatives plc (AIM: FDP.L, ESM: GYQ.I), a leading provider of software and consulting services to the capital markets industry, announces the launch of its Swap Execut...
1131 days ago,(2012/05/30) - News Articles
The Securities and Exchange Commission today charged a Phoenix-based investment adviser and his firm for recommending investments without telling clients about his personal st...
News: SEC Charges Former Fannie Mae And Freddie Mac Executives With Securities Fraud - Companies Agree To Cooperate In SEC Actions
1297 days ago,(2011/12/16) - News Articles
The Securities and Exchange Commission today charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage C...
News: SEC Obtains Asset Freeze Against Long Island Investment Adviser Charged With Defrauding Investors
1216 days ago,(2012/03/06) - News Articles
The Securities and Exchange Commission today announced it has charged a New York-based investment adviser with defrauding investors in five offshore funds and using some of ...
News: SEC Charges California Company, Co-CEOs, And Attorney In Series Of Fraudulent Schemes Pumping Company Stock
1293 days ago,(2011/12/20) - News Articles
The Securities and Exchange Commission today charged a purported heart monitoring device company and six individuals involved in a series of fraudulent schemes to artificially...
325 days ago,(2014/08/14) - Fidessa
Comprehensive solution from Fidessa addresses complexities involved Hong Kong, 13th August 2014 – Fidessa group plc (LSE: FDSA), has today announced that fiv...