ASIC alleges the CFO attempted to manipulate the price of his company’s shares on the Australian Securities Exchange.
Zhonghan Wu, the former chief financial officer of Traditional Therapy Clinics Limited, has been charged with 19 counts of market manipulation, eight counts of attempted market manipulation, six counts of forgery and three counts of fraud following an ASIC investigation.
ASIC alleges that between 8 September 2015 and 30 November 2015, Mr Wu carried out multiple share transactions for the purpose of creating an artificial price for TTC shares on the ASX. ASIC also alleges Mr Wu dishonestly obtained loans worth more than half a million dollars from the Commonwealth Bank for personal property purchases, providing falsified documents to support his loan applications.
TTC’s main business operations are in China. ASIC applied to have the company wound up over concerns that none of its directors ordinarily resided in Australia and on the basis of irregularities in bank records received from the company’s China-based management.
TTC was admitted to the official list of the ASX on 3 September 2015 after it raised $15 million through an IPO. It was delisted on 17 December 2018 and a liquidator was appointed on 29 January 2019.
The Commonwealth Director of Public Prosecutions is prosecuting the matter. Mr Wu did not enter a plea before the court.
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