Future FinTech CEO Denies SEC's Manipulative-Trading Allegations
January 17 2024 - 11:31AM
Dow Jones News
By Dean Seal
The chief executive of Future Fintech Group, Shanchun Huang,
denied allegations from the U.S. Securities and Exchange Commission
that he artificially inflated the company's share price before
taking over as CEO.
Through his attorney, Huang said Wednesday morning that he
intends to fight the SEC's lawsuit in court and provide evidence
that he didn't trade in Future Fintech's stock before becoming CEO
in March 2020.
The agency alleged last week that Huang used manipulative
trading techniques in early 2020 to push the fintech firm's share
price up, with the intention of preventing the stock from being
delisted from the Nasdaq exchange for trading below the $1 minimum
bid price.
According to the SEC, the trades were placed after Future
FinTech's founder and former chief executive approached Huang about
taking over as CEO. The securities regulator also alleges that
Huang failed to make required filings about his ownership stake in
the company until a year after he became CEO, by which time he no
longer owned any company stock.
Huang said Wednesday that he relied on advice and counsel of
retained professionals in connection with his disclosure
obligations. The CEO claims he has cooperated with the SEC and
testified in the investigation that led to the lawsuit.
"I will not permit the SEC's case to interrupt my and the
board's vision for the growth and success of the company," Huang
said.
The SEC is seeking fines and to have Huang barred from serving
as an officer or director of a public company.
Future Fintech said on Tuesday that it has established an
independent committee to review and investigate the SEC's claims,
adding that it has placed restrictions on Huang's ability to trade
in company stock while the SEC's litigation is ongoing. The SEC
lawsuit won't affect company operations, according to the
board.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
January 17, 2024 12:16 ET (17:16 GMT)
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