- Briefing Your roundup of Asian tech and startup news that matter
Deepti Sri · · 1 min readChinese regulators fine former CEO of SPAC-linked EV maker $37m over IPO fraud
“Jia Yueting, founder of formerly high-flying technology conglomerate LeEco Holdings, has been fined US$36.81 million by Chinese regulators over false and inadequate financial disclosures in the 2010 IPO of its video-streaming unit in Shenzhen and other fundraisings,” reported Nikkei Asia.
Details:
- The China Securities Regulatory Commission (CSRC) said that the revenues and profits of Leshi Internet Information & Technology, the group’s streaming unit, was inflated through fabricated deals with private companies controlled by its parent firm’s founder.
- Leshi, also known as Le.com, has been fined 240.6 million yuan (US$36.8 million), in addition to the 241.2 million yuan (US$36.9 million) fine on Jia. The CSRC also barred the founder from participating in China’s securities market.
Context:
- The development comes amid the listing plans of LeEco-backed EV maker Faraday Future, which has agreed to go public through a merger with blank-check firm Property Solutions Acquisition Corp, with the deal expected to generate gross proceeds of over US$1 billion.
- Jia resigned as the CEO of Faraday in 2019 after he had filed for personal bankruptcy in the US to restructure US$2 billion in debt.
Currency converted from Chinese yuan to US dollar: US$1 = 6.54 yuan.
Editing by Collin Furtado and September Grace Mahino
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
