China Medical Technologies Executives Charged in U.S. Fraud Case
- Founder, CFO accused of stealing more than $400 million
- Unsealed Brooklyn Indictment alleges board members forced out
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The founder and a former executive of China Medical Technologies Inc. were charged in the U.S. with stealing more than $400 million from investors in the bankrupt maker of medical diagnostic tests as part of a seven-year scheme.
Xiaodong Wu, 59, who was chief executive officer of the Beijing-based company, and former Chief Financial Officer Tak Yung Samson Tsang, 46, allegedly lied about how they would spend the proceeds of note offerings from January 2005 to November 2012, saying they would be used for general corporate purposes, to buy businesses and technologies and to repurchase outstanding notes, prosecutors said.