The Ontario Securities Commission has ruled that Sino-Forest and several of its top executives defrauded investors and misled investigators.

The regulator has found that former CEO Allen Chan, Albert Ip, Alfred Hung and George Ho defrauded investors by overstating the company’s assets and revenue.

Allegations of fraud against Simon Yeung were dismissed, but the regulator ruled he misled staff during their investigation.

Sino-Forest, which was established in 1994, was once the most valuable forestry company listed on the Toronto Stock Exchange.

Although it was based in Ontario, the company conducted most of its business in China until it collapsed in 2012.

Defence lawyers for the executives argued that what the OSC called fraud were actually mistakes made by a fast-growing company.

Read OSC’s reasons and decision document.

As The Globe and Mail reports, any sanctions or costs with respect to the decision will be determined at a later hearing.

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