China Intelligent Lighting, based in Guangdong, China made false representations and raised US$7.6m in a 2010 IPO. The company executives diverted the proceeds almost immediately. 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 to the SEC. The company furthered the scheme by providing the auditor with false bank and accounting records. The company officials also provided false statements to the SEC in response to subpoenas. After regulators began scrutinizing the company, the auditor resigned in March 2011 and China Intelligent Lighting has failed to file periodic reports since then. The SEC won its case against CILE.
Bloomberg: SEC Sues China Intelligent Lighting for Offering Fraud, 23 Jul 2013
Resignation of Auditor, 29 Mar 2011
China Intelligent Lighting: Prospectus Supplement, 16 Dec 2010