Unhappy Commission: Sino Forest Must Resign

The Chinese forestry company is accused of violating Ontario’s securities laws and just generally acting shady.

The Ontario Securities Commission has stopped all trading in Sino Forest Corp’s shares and ordered four vice-presidents to resign amid allegations of fraud in the Chinese forestry company. The OSC announced this morning that it believes the company, which manages tree plantations in China and sells wood and wood products, has “misrepresented some of its revenue and/or exaggerated some of its timber holdings” and that certain senior officials have perpetuated a fraud. The company has been under intense scrutiny since the American firm Muddy Waters accused the company of wrongdoings back in June. The OSC ordered the firings before a hearing about the allegations, claiming that the time required to hold a hearing could harm public interests.