{"id":6127,"date":"2017-03-20T20:27:49","date_gmt":"2017-03-21T01:27:49","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1494"},"modified":"2017-03-20T20:27:49","modified_gmt":"2017-03-21T01:27:49","slug":"us-attorneys-office-charges-two-ex-china-medical-technologies-executives-400m-securities-fraud","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/us-attorneys-office-charges-two-ex-china-medical-technologies-executives-400m-securities-fraud\/","title":{"rendered":"US Attorney\u2019s Office Charges Two Ex-China Medical Technologies Executives in $400M Securities Fraud"},"content":{"rendered":"

\t\t\t\tChina Medical Technologies Inc. founder and ex-CEO Xiaodong Wu and Ex-CFO Tak Yung Samson Tsang are charged with securities fraud<\/a>, wire fraud conspiracy, and securities fraud conspiracy. The two men are accused of bilking the company\u2019s noteholders and investors of over $400M. They are now fugitives and live in China.<\/p>\n

Investors thought they were getting involved in a medical device company that was listed on NASDAQ. Funds were supposed to be invested in China Medical or used to buy back existing debt. However, according to the US Attorney\u2019s Office for the Eastern District of New York, Tsang and Wu misrepresented how proceeds raised via two note offerings would be used and then stole investors’ money. They sent the funds to entities that they were either affiliated with or controlled.<\/p>\n

The indictment said that between 1\/2005 and 11\/2012, Tsang, Wong, and a co-conspirator ran this securities scam and made material misrepresentations and omissions about the investments. To facilitate their fraud, the then-executives caused a China Medical outside auditor and independent director to step down, ceased issuing public disclosures about how material events were impacting security values, and stopped paying interest on the notes. <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

China Medical Technologies Inc. founder and ex-CEO Xiaodong Wu and Ex-CFO Tak Yung Samson Tsang are charged with securities fraud, wire fraud conspiracy, and securities fraud conspiracy. The two men are accused of bilking the company\u2019s noteholders and investors of over $400M. They are now fugitives and live in China. Investors thought they were getting […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3741],"tags":[2780],"class_list":["post-6127","post","type-post","status-publish","format-standard","hentry","category-securities-fraud","tag-china-medical-technologies"],"yoast_head":"\nUS Attorney\u2019s Office Charges Two Ex-China Medical Technologies Executives in $400M Securities Fraud — Investor Lawyers Blog — March 20, 2017<\/title>\n<meta name=\"description\" content=\"China Medical Technologies Inc. founder and ex-CEO Xiaodong Wu and Ex-CFO Tak Yung Samson Tsang are charged with securities fraud, wire fraud conspiracy, — March 20, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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