Keyuan Petrochemicals Inc. and Former CFO Settle FCPA Books and Records Action with SEC for $1.025 million

China

On February 28, 2013, Keyuan Petrochemicals Inc., a China-based issuer with US-trading stock, and its former CFO, settled an enforcement action with the SEC for a total of $1.025 million.  The SEC alleged numerous violations primarily related to a failure to disclose related party transactions, but also alleged the use of an off-balance sheet cash account to pay various expense including gifts to Chinese government officials, and a failure to properly record such transactions.

• SEC Complaint
• SEC Litigation Release