SEC charges Longtop with financial report failings

14 November 2011

Longtop Financial Technologies has been charged with failing to produce accurate financial reports by the Securities and Exchange Commission (SEC).

According to the regulator, Longtop failed to comply with reporting rules by not delivering an annual report for the fiscal year to 31 March 2011.

The Chinese technology provider’s independent auditor stated that previous audited reports on its financial statements from 2010, 2009 and 2008 should no longer be used for being unreliable.

Firms which fail to comply with securities laws could have their registration security suspended or revoked under SEC’s rules.

Antonia Chion, associate director of the SEC’s Division of Enforcement, said: “We are taking this action to protect investors because it appears there is no current and reliable information available to the investing public about Longtop.”

The SEC explained that if the registration is revoked, then trades in Longtop securities will not be allowed.

Longtop will have the opportunity to appeal against the SEC’s allegations as part of a litigated administrative proceeding.

Deloitte Touche Tohmatsu was subpoenaed by the SEC earlier in the year for failing to provide documents related to an SEC investigation into possible fraud by Longtop.

By Jim Ottewill

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