Executives Defraud Chinese Pharmaceutical Company

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According to Bloomberg, China’s securities regulator blacklisted six executives for their role in a $4.2 billion accounting scandal at Kangmei Pharmaceutical Co., one of the country’s biggest drugmakers.

Questions:

  1. What did the executives do?
  2. What did the firm admit to that allowed the fraud to occur?
  3. What was the problem with the fine ordered for the executives?
  4. How much does the fine amount to in U.S. dollars?
  5. What has happened to Kangmei Pharmaceutical Company’s stock since the announcement of the financial fraud investigation?

Source:

Bloomberg Staff. (2020). China blacklists six executives linked to $4.2B fraud. Accounting Today, May 15 (Retrievable online at https://www.accountingtoday.com/articles/china-blacklists-six-executives-linked-to-4-2b-fraud?)