Tenn. feed company agrees to fraud settlement
MEMPHIS, Tenn. (AP) – Securities and Exchange Commission officials say a Tennessee-based animal feed company has agreed to pay back $18 million in illegal profits from an accounting fraud.
In a news release, the SEC said Monday that AgFeed Industries and top company executives were charged in March for repeatedly reporting fake revenues from the company’s China operations in order to meet financial targets and inflate AgFeed’s stock price.
The SEC says the company, which is in Chapter 11 bankruptcy, obtained illegal gains in stock offerings to investors at the inflated prices. Company managers were accused of failing to disclose the fraud to investors.
AgFeed neither admits nor denies the charges in the settlement, which is subject to court approval. The $18 million will be paid to fraud victims.
