A federal grand jury on Tuesday indicted three business executives in an alleged conspiracy to defraud investors in a firm providing information about Chinese financial markets.
According to the indictment, the CEO and two board members of Xinhua Finance Limited engaged in undisclosed transactions with stock in their firm worth more than $50 million.
The three defendants are Shelly Singhal of Newport Beach, Calif.; Loretta Bush of Shanghai, China; and Dennis Pelino of Miami Beach, Fla. Bush was Xinhua Finance's chief executive officer, Singhal was chairman of the audit committee, and Pelino was chairman of the compensation committee.
Xinhua Finance's filings with U.S. regulators say the firm was founded on the need for reliable financial information flowing in and out of China. Their firm was headquartered in Shanghai and Xinhua Finance's business in Japan provided the first initial public offering of stock in that country from a Chinese firm.