SEC Charges China-Based Company and CEO in Latest Cross-Border Working Group Case

The SEC Cross-Border Working Group (which focuses on non-U.S. companies that issue securities in the United States) charged China MediaExpress and CEO Zheng Cheng for falsely reporting significant increases in business operations, financial conditions, and profits immediately upon becoming a publicly traded company through a reverse merger.

According to the complaint, after China MediaExpress materially misrepresented the company's financial condition, its stock price tripled to more than $20 a share. The SEC complaint seeks financial penalties, permanent injunctions, disgorgement, and an officer and director bar against Zheng.

See: SEC Press Release and SEC Complaint.