The SEC filed a complaint in US District Court for the Southern District of New York, and accused Siris and his firms Guerrilla Capital Management and Hua Mei 21st Century for their involvement with China Yingxia between 2007 and 2010.
Siris, an active investor in Chinese companies, has been accused for misleading investors in his two hedge funds through which he invested $1.5m in China Yingxia.
SEC claimed that he was further charged for involvement in the business of the firm as well as receiving and using secret information to garner illicit trades based on nonpublic information.
The fund manager also tried to evade the registration provisions of the securities laws, by getting shares from the China Yingxia CEO’s father and improperly sold them without any registration statement in effect.
Furthermore, Siris engaged in insider trading ahead of 10 confidentially solicited offerings for other Chinese issuers.
Siris and his firms agreed to pay more than $1.1m to settle the SEC’s charges.
The SEC has also charged five individuals and one firm separately, for securities law violations related to China Yingxia.
