(Adds details from SEC statement)
By Sarah N. Lynch
WASHINGTON, March 27 The U.S. Securities and
Exchange Commission accused L&L Energy Inc of
committing fraud when the coal company and its founder made
false disclosures about who was running the company, the agency
said on Thursday.
A criminal indictment against the founder, Dickson Lee, was
also unsealed in federal court in Seattle, the SEC said in a
L&L Energy, which has all of its operations in China and
Taiwan, "created the false appearance that the company had a
professional management team in place when in reality Dickson
Lee was single-handedly controlling the company's operations,"
the SEC said.
L&L Energy and Lee also misrepresented that they had an
acting chief financial officer and submitted false
certifications ostensibly signed by the company's CFO, the SEC
Public companies' CFOs are required by the 2002
Sarbanes-Oxley Act to certify to the accuracy of financial
The SEC said it also issued a settled cease and desist order
against L&L Energy's former audit committee chair Shirley Kiang,
finding that she played a role in the company's reporting
violations by signing an annual report with a false
Kiang neither admitted nor denied the charges. Under the
order, Kiang must permanently refrain from signing any public
filing with the SEC containing Sarbanes-Oxley certifications.
Lawyers for Dickson and Kiang could not immediately be
reached for comment. A lawyer for the company did not have an
(Reporting by Aruna Viswanatha; Additional reporting by Dena
Aubin; Editing by Andre Grenon and Lisa Shumaker)