Canadian regulator settles case against former Sino-Forest CFO
TORONTO (Reuters) - The former chief financial officer of Sino-Forest Corp has agreed to assist with the investigation of the collapsed forestry company as part of a settlement with regulators, Canada's main securities watchdog said on Monday.
The Ontario Securities Commission said that under the deal David Horsley will be barred for life from being an officer or director of a public company and pay C$700,000 ($652,200) towards the costs of the investigation.
China-focused Sino-Forest had been listed on the Toronto Stock Exchange and at one point had a market capitalization of more than C$6 billion. But its shares tanked and were later de-listed after a short-seller in 2011 alleged the company had exaggerated its assets.
Under the settlement, Horsley acknowledged he contravened Ontario securities law by providing incorrect or untrue information to the regulator. The OSC said he also admitted he did not have the required knowledge of Sino-Forest’s business and placed undue reliance on what he was told by the company's overseas management.
Horsley's lawyer declined to comment on the settlement.
The regulator said it is still pursuing its case against other former Sino-Forest executives, including Allen Chan, Albert Ip, Alfred C.T. Hung, George Ho and Simon Yeung.
($1 = 1.0733 Canadian Dollars)
(Reporting by Alastair Sharp; Editing by Jeffrey Hodgson and Andre Grenon)
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