TORONTO, Sept. 26, 2012 /PRNewswire/ - Sino-Forest Corporation ("Sino-Forest" or the "Company") announced today that the Company received a second enforcement notice (the "Second Enforcement Notice") from staff of the Ontario Securities Commission (the "OSC" or the "Commission"). The Second Enforcement Notice adds a further allegation similar in nature to the allegations in the statement of allegations in relation to the Company and others posted on the OSC's website on May 22, 2012 (http://www.osc.gov.on.ca) (the "Original Statement of Allegations").
As previously announced, on May 22, 2012, staff of the Commission commenced proceedings before the Commission against the Company and six of its former officers. In the notice of hearing and Original Statement of Allegations, OSC staff allege that the Company breached Ontario securities laws and acted in a manner that is contrary to the public interest by providing information to the public in documents required to be filed or furnished under Ontario securities laws which was false or misleading in a material respect contrary to section 122 of the Ontario Securities Act (the "Act") and by engaging or participating in acts, practices or a course of conduct related to its securities which it knows or reasonably ought to know perpetuate a fraud on any person or company contrary to section 126.1 of the Act.
Enforcement notices issued after proceedings have been commenced typically precede a possible amendment to the statement of allegations, and provide the respondents with an opportunity to make representations before a decision is taken by staff of the Commission to amend a statement of allegations.
The Company is reviewing the Second Enforcement Notice and considering what steps if any are appropriate for the Company to take in response to the Second Enforcement Notice.
SOURCE Sino-Forest Corporation