AgFeed kept two sets of books and provided a fraudulently inflated version to US investors in order to raise capital for acquisitions and expansions. Fake revenues and profits were hidden largely in receivables and the fraudulent activity was flagged to the US board by an internal whistlerblower. The board initially delayed reporting the potential fraud and the company rapidly collapsed after the findings of an internal investigations, which confirmed the fraud, were published. AgFeed was delisted in 2012, applied for bankruptcy protection in July 2013 and was fined by the SEC in September 2014.
Last updated August 2021lock03 Read More