One of the key stock-transfer agents in the world of Chinese reverse mergers is censured by SEC after the 75-year-old father of the agent's founder and president misappropriated $2.7 million from the firm.
STC and Kevin Halter Jr. agreed to be censured by the SEC for not having proper controls in place and for failing to supervise his father's work, paying a $10,000 penalty. Also, STC has agreed to retain an independent consultant, which will "conduct a comprehensive review of, and recommend corrective measures concerning, its policies and procedures relating to handling of client funds and securities." The transfer agent will also be required to provide the consultant with "access to STC's files, books, records and personnel as reasonably requested." STC has preformed transfer-agent or escrow services for countless Chinese reverse-merger companies, including the now delisted Rino International and many others: Zhongpin ( HOGS), Wonder Auto ( WATG), China Housing & Land ( CHLN), China Nutrifruit ( CNGL), China Biologic Products ( CBPO), China BAK Battery ( CBAK), China Agritech ( CAGC) and ShengdaTech ( SDTH). It has also done work for the Austin, Texas-based Whole Foods ( WFMI). -- Written by Scott Eden in New York >To contact the writer of this article, click here: Scott Eden. >To follow the writer on Twitter, go to http://twitter.com/ScottEden. >To submit a news tip, send an email to: email@example.com.