The SEC sued NIVS IntelliMedia Technology Group Inc. over an alleged scheme to divert IPO proceeds from investors in 2010. NIV raised $21.5 million in a public offering in April 2010. NIV and company executives diverted the proceeds “almost immediately upon receipt,” according to the SEC. To mask the diversions, the defendants falsified bank and accounting records to reflect inflated cash balances, lied to their auditor about cash balances and made false and misleading filings with the SEC. NIV furthered the scheme by providing the auditor with false bank and accounting records, the SEC alleged. Company officials also provided false statements to the SEC in response to subpoenas, the commission said.
After regulators began scrutinizing the companies, the auditor resigned in March 2011 and NIV failed to file periodic reports since then.
NIV was delisted in 2011. In March 2014, NIV had a judgement against them by default and had penalties/fines of US$26.5m.
Bloomberg: SEC Sues China Intelligent Lighting for Offering Fraud, 23 Jul 2013
US District Court: Legal Document, 22 Jul 2013
NIVS IntelliMedia Technology: Annual Report 2009