China-linked firms among 255 US shell companies suspended by SEC
US regulator suspends 255 shell companies, including China-related firms, in latest crackdown on 'pump and dump' schemes
China-related firms are among the 255 shell companies recently suspended by the US Securities and Exchange Commission (SEC) to prevent a form of fraud made famous in the movie, .
At least one of the suspended companies, New China Ventures, is based in China. The firm has a Beijing address, but it was incorporated in the US state of Nevada.
A 2010 corporate presentation said the company was engaged in China's water industry.
New China Ventures has 32 million shares traded over the counter (OTC) in the US. The stock last closed at its 52-week high of 0.0005 US cent.
The SEC's list of suspended shell companies includes several others with China-related names, such as China Oil & Methanol Group, Jinhua Marine Biological (USA) and Tianxin Mining (USA).
On February 3, the US regulator announced that it had suspended 255 over the counter listed shell companies in 26 US states and two unnamed foreign countries. The SEC described these shell companies as "ripe for abuse".
It said it had suspended the companies to prevent "pump and dump schemes". In such a scam, perpetrators tout a thinly traded microcap stock through false and misleading statements about the company to the market, the SEC said.
