Sino-Forest chairman and CEO resigns amid fraud allegations

The move comes after Canadian regulators on Friday suspended the trading of Sino-Forest shares and said the company appears to have misrepresented some of its revenues and/or exaggerated its timber holdings.

Allen Chan has resigned as chairman and CEO of Sino-Forest as the fallout from fraud allegations made in early June by short-selling specialist Carson Block of Muddy Waters Research continues to escalate.

The Toronto-listed company made the announcement yesterday, after the Ontario Securities Commission OSC on Friday ordered all trading in Sino-Forest stock to be suspended for at least 15 days and called for the resignation of Chan and four other company officials, though the Canadian regulator quickly retracted its call for the five officials to step down. While it didn’t offer any explanation for the retraction, various media have reported over the weekend that the regulator first needs to...

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