TORONTO - The Globe and Mail is reporting that police have launched an investigation into Chinese timberland company Sino-Forest Corp. and allegations the Toronto-listed firm defrauded Canadian investors.
The newspaper cited sources that said the RCMP investigation centres on whether executives committed fraud by overstating the value of the company's assets and revenue.
The police investigation comes as the Ontario Securities Commission and the company's board both investigate Sino-Forest's dealings in China.
Short-seller Muddy Waters Research accused the company of fraud in June. None of the allegations have been proven.
Last week, a member of its board of directors, who was involved in probing the allegations of fraud, resigned.
At one time, Sino-Forest (TSX:TRE) was the most valuable forestry company listed on the Toronto Stock Exchange.