SEC and Canada Charge China Affiliates of Multinational Accounting Firms with Violating U.S. Securities Law in Refusing to Produce Documents and Missing Activities

On December 3, 2012, the U.S. Securities and Exchange Commission (SEC) began administrative proceedings against the China affiliates of large accounting firms for refusing to produce audit work papers and other documents related to China-based companies under investigation by the SEC for potential accounting fraud against U.S. investors.