Former Top Execs at Bankrupt China Medical Tech Indicted for Defrauding Investors Out of $400 Million+
Two former top executives of the now-defunct China Medical Technologies Ltd have been criminally charged in the United States with defrauding investors out of more than $400 million, U.S. prosecutors said on Monday.
According to a 3-count indictment, founder and Chief Executive Officer Xiaodong Wu, 59, and Chief Financial Officer Tak Yung Samson Tsang, 46, stole much of the $426 million they raised in two convertible bond offerings in 2008 and 2010.
Prosecutors said they did this by sending bond proceeds to entities they and their co-conspirators controlled, rather than invest it in the Beijing-based medical testing equipment maker or repurchase existing debt as they had promised.
According to a 3-count indictment, founder and Chief Executive Officer Xiaodong Wu, 59, and Chief Financial Officer Tak Yung Samson Tsang, 46, stole much of the $426 million they raised in two convertible bond offerings in 2008 and 2010.
Prosecutors said they did this by sending bond proceeds to entities they and their co-conspirators controlled, rather than invest it in the Beijing-based medical testing equipment maker or repurchase existing debt as they had promised.