Feb. 22 (Bloomberg) -- China’s Puda Coal Inc. tumbled 11 percent after the Securities and Exchange Commission charged two of its executives with defrauding investors.
The company’s shares sank to 25 cents per share in New York, the lowest level since Feb. 17 based on closing prices.
The SEC charged Puda chairman Ming Zhao and former Chief Executive Officer Liping Zhu, according to a statement from the regulatory body today. The executives defrauded investors into believing they were investing in a Chinese coal business when in fact they were investing in an empty shell company, the SEC said.
The Taiyuan, China-based company said in a Jan. 13 statement that director Jianfei Ni resigned from the board. On Aug. 10, 2011, Puda said it received notification from the New York Stock Exchange that the bourse intended to delist its common stock.
--With assistance from Will Daley in New York. Editors: Marie- France Han, Emma O’Brien
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