SEC probing fraud at U.S.-listed foreign companies

Federal securities regulators are probing Chinese and other foreign companies with questionable accounting practices that have used backdoor methods to access the U.S. capital markets, a top regulator said on Monday.

“In recent years we have seen a spike of private companies merging with public shell companies,” said Luis Aguilar, a commissioner at the U.S. Securities and Exchange Commission.

Read more: SEC probing fraud at U.S.-listed foreign companies — IB Times