Olam International Ltd., the agricultural commodities trader part-owned by Singapore’s state investment company, plunged the most in four years in U.S. trading after short-seller Carson Block questioned the company’s accounting methods.
Allen Chan’s resignation as chief executive officer of Sino-Forest Corp., which is accused of exaggerating timber holdings, marks the second time in 22 years the Chinese entrepreneur has lost control of a company he founded.
Sino-Forest Corp. Chief Executive Officer Allen Chan is considering temporarily stepping down after the Ontario Securities Commission halted trading in the company’s shares, a person familiar with the situation said.
Sino-Forest Corp.’s Chief Executive Officer and Chairman Allen Chan resigned two days after a Canadian securities regulator said the company may have exaggerated timber holdings, the same charge made by short seller Carson Block in June.
Sino-Forest Corp. cofounder Allen Chan helped run a “complex fraudulent scheme” that exaggerated the timber producer’s assets, secretly benefited from a 2010 acquisition and misled investigators, Canada’s main financial regulator said.
Canada’s main securities regulator extended the trading ban on Sino-Forest Corp.’s shares while it pores over tens of thousands of documents as part of an investigation into possible fraud at the forestry company.
Sino-Forest Corp. Chairman William Ardell says he found no sign of major fraud while overseeing an eight-month probe of the company. He also says a full account of the Chinese timber producer’s activities and business ties may never be known.