Macquarie to pay U.S. SEC $15 million over China stock sale

 

Friday’s settlement resolves charges that New York-based Macquarie Capital (USA) Inc approved marketing materials for the $108 million offering in December 2010 despite knowing it falsely represented that Puda owned 90 percent of a Chinese coal miner.

 

The SEC said Macquarie did not act on a due diligence report that showed Puda Chairman Ming Zhao had transferred that stake to himself, and then sold part of it to state-owned CITIC Group.

 

“Underwriters are critical gatekeepers who are relied upon by the investing public to ferret out the essential facts and address potential inaccuracies before marketing a public stock offering,” Andrew Calamari, director of the SEC office in New York, said in a statement.

 

 

 

Curated from Macquarie to pay U.S. SEC $15 million over China stock sale| Reuters

 

(Reuters) – A unit of Australia’s Macquarie Group Ltd will pay $15 million to settle U.S. Securities and Exchange Commission charges that it misled investors who bought shares of China’s Puda Coal Inc in an offering it underwrote.

 

 

Curated from Macquarie to pay U.S. SEC $15 million over China stock sale