TORONTO, June 5, 2013 /CNW/ - The Ontario Securities Commission has approved a settlement agreement reached between Staff of the Commission and Boyuan Construction Group, Inc. ("Boyuan"). Boyuan's operations and management are located in Zhejiang, China and its primary business is the construction of residential and commercial buildings in China.
Boyuan admitted to conduct contrary to the public interest in connection with a related party transaction and loan agreement that was entered into in November 2010 without adequate internal controls or consultation with the company's CFO, senior officers or the Board of Directors and as a result, Commission staff and company auditors were provided with inaccurate responses and a false document related to the transaction.
Under the settlement agreement, Boyuan is required to retain a consultant to conduct a comprehensive examination and review of its internal controls for financial reporting, policies and procedures, training, ethics and compliance with financial and other reporting requirements of Ontario securities law. In addition, Boyuan must make a payment of $200,000 to the Commission for the benefit of third parties or investor education, as well as a payment of $100,000 for investigation costs.
Commission staff acknowledge and appreciate the assistance provided in this matter by the British Columbia Securities Commission, the Alberta Securities Commission, the British Virgin Islands Financial Services Commission and the Hong Kong Securities and Futures Commission.
A copy of the Settlement Agreement and Order of the Commission in this matter are available on the OSC website at www.osc.gov.on.ca.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. As part of its review of emerging market issuers, the OSC recently issued an Issuer Guide for Companies Operating in Emerging Markets that summarizes its expectations for reporting issuers listed on Canadian exchanges with significant business operations in emerging markets.
SOURCE: Ontario Securities Commission
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