Sino-Forest's Chan resigns as chairman and CEO

Sino-Forest's Chan resigns as chairman and CEO

By Ryan Vlastelica

NEW YORK (Reuters) - Sino-Forest Corp said on Sunday that Allen Chan had resigned as chairman and chief executive officer and that he had been appointed founding chairman emeritus.

Sino also said in a statement that it had placed three other employees on administrative leave.

The company said its action was based on findings during an independent committee's review of fraud allegations. The company did not elaborate. Sino also said that Chan's resignation was pending completion of the committee's review.

On Friday, the Ontario Securities Commission in Canada said the company appeared to have defrauded investors by exaggerating its assets and ordered trading in the stock to cease.

Judson Martin, the timber company's vice chairman and executive director, has assumed the role of CEO while Lead Director William Ardell has assumed the chairman position, the company said.

Ardell also chairs the independent committee formed after Hong Kong-based research firm Muddy Waters accused the company of "aggressively committing fraud" in early June. Shares have plunged almost 75 percent since then.

Popular in the Community

Close

What's Hot