China Ocean CEO referred to prosecutors for stock fraud

The Financial Services Commission filed a complaint against the head of China Ocean Resources, a Hong Kong-based fishery listed on the Korean stock market for altering public disclosures to gain an advantage.

The regulatory agency said Wednesday that it reported Zhang Huoli, CEO of China Ocean Resources, to Korean prosecutors on allegations that he fabricated information on the Kospi’s electronic disclosure system to lower its stock price so that the company can attract more investors hunting for cheaper deals.

Zhang is also accused of not reporting part of his ownership in the company’s shares.

The regulator had suspended trading of China Ocean Resources earlier this year because of fraudulent audits.

By Park Eun-jee