LAS VEGAS and XI'AN, China, Aug. 26, 2015 /PRNewswire/ -- Sino Clean Energy Inc. (Nasdaq "SCEI") – Robert W. Seiden, Esq., Court-Appointed Receiver ("Receiver") of Sino Clean Energy, Inc. ("SCEI") has successfully beaten back Baowen Ren, the former chairman of SCEI, in the Nevada bankruptcy court where the Honorable Judge Bruce T. Beesley ruled today that Ren's unauthorized bankruptcy filing of SCEI had to be dismissed.
Ren and his Nevada lawyers filed a bankruptcy petition on July 7, 2015, seeking U.S. Bankruptcy Code protection for SCEI and availing the company of the automatic stay after SCEI was placed into receivership by the Nevada state court last year for failing to report to the SEC and going dark. Ren's timing of the bankruptcy petition was especially suspect as it came on the heels of the Receiver's filing of a motion in the Nevada state court asking that Mr. Ren be held in civil and criminal contempt.
The Receiver's lawyers at Foley & Lardner successfully persuaded the Bankruptcy Judge that the bankruptcy filing was not only impermissible but in violation of the receivership order and was filed based in part on false statements. Katherine Catanese, the lead bankruptcy lawyer for the Receiver, who successfully argued the case before the Bankruptcy Court, cited powerful facts and law that led to today's victory for US shareholders. Ms. Catanese was assisted by Ryan Works of McDonald Carano in Nevada, Douglas Spelfogel of Foley & Lardner and several staff members of the Receiver including Nathaniel Francis and Heike Vogel, Esq.
In the wake of today's ruling, Ren must now face the contempt of court proceeding pending in Nevada state court for his actions in violation of the Nevada state court order and in defiance of the Receiver's demands. Ren is also subject to an active criminal investigation in Hong Kong by the Commercial Crimes Bureau for his actions in falsifying documents in Hong Kong that was uncovered by the Receiver's auditors there.
SOURCE U.S. Court-appointed Receiver for Sino Clean Energy Inc.