Sino-Forest gets new Ontario Securities Commission enforcement notice

By Caroline Salls

Pittsburgh, Sept. 27 - Sino-Forest Corp. received a second enforcement notice from the Ontario Securities Commission, according to a company news release.

The second notice adds a further allegation, which the company said is similar to the allegations included in a statement posted on the OSC's website on May 22.

As previously reported, the commission launched proceedings against Sino-Forest and six of its former officers on May 22.

In the notice of hearing and original statement of allegations, the commission alleged that the company breached Ontario securities laws and acted in a manner that is contrary to the public interest by providing false or misleading information to the public in documents required to be filed or furnished under Ontario securities laws.

In addition, the commission alleged that the company breached the securities laws by engaging or participating in acts, practices or a course of conduct related to its securities that it knows or reasonably ought to know perpetuate a fraud on any person or company.

According to the release, enforcement notices issued after proceedings have begun typically precede a possible amendment to the statement of allegations and give the respondents an opportunity to make representations before a decision is taken by the commission to amend a statement of allegations.

The company said it is reviewing the second enforcement notice and considering what steps if any are appropriate to take in response.

Toronto-based Sino-Forest is a commercial forest plantation operator in China.

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