SHANGHAI — American regulators charged two Chinese executives on Wednesday with defrauding investors of hundreds of millions of dollars by stealing and selling the assets of a coal mining company in China whose stock trades in the United States.
In its lawsuit, the Securities and Exchange Commission accused Zhao Ming, the chairman of Puda Coal, and Zhu Liping, the former chief executive, of failing to disclose a 2009 transaction that transferred the company’s only revenue-producing asset, Shanxi Puda Coal, to the chairman, and then on to a fund controlled by a Chinese state-owned company. The deal, the S.E.C. said, allowed the chairman to reap a huge profit.
After the transfer, Puda Coal became nothing more than a shell company, according to the S.E.C. Federal authorities say the company continued to raise money from United States investors, saying the money would be used to acquire additional coal assets in China.