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SEC Obtains Asset Freeze and Other Emergency Relief in Fraudulent Tender Offer Scheme

SECNew York (HedgeCo.Net) – The Securities and Exchange Commission filed an emergency action ex parte against Luis Chang and Everbright Development Overseas Limited. The Commission alleges that Defendants Chang and Everbright victimized an American mining company, Allied Nevada Gold Corporation (“Allied Nevada”), by furtively buying up its stock, intentionally disseminating false press releases about a potential tender offer for the mining company, and then selling its shares into a market inflated by their fraudulent scheme.

According to documents filed simultaneously with the Commission’s complaint in federal court in Manhattan, Defendants Chang and Everbright were actively attempting to liquidate their U.S. assets. They were also wiring assets offshore.

The Honorable Edgardo Ramos granted the SEC’s emergency request to preserve these assets by issuing a temporary asset freeze order.
The Commission further alleges that unbeknownst to Allied Nevada and the investing public, Defendant Chang, while driving the purported tender offer, had bought over 5% of the Allied Nevada stock through an entity he controls, Defendant Everbright Development Overseas Limited.

The court’s order, among other things, temporarily freezes the Defendants’ assets, temporarily restrains them from further similar misconduct, requires an accounting, prohibits document alteration or destruction, and expedites discovery.

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