Future FinTech’s board establishes committee to investigate SEC allegations

Future Fintech Group announced its Board of Directors held a meeting on January 15, to respond to allegations made to its CEO by the SEC. The Board agreed to establish an independent committee to review and investigate the allegations made by SEC. The Board also imposed restrictions on the CEO to trade in the Company’s stock during the pendency of the litigation. In addition, the Board decided to provide training to Company officers, directors and employees as to appropriate trading practices under the insider trading policy of the Company. AOn January 11 the SEC filed a civil lawsuit alleging civil violations of the federal securities laws against Shanchun Huang, the Company’s CEO throughout the period at issue in the Complaint, for manipulative trading in the Company’s stock shortly before he became its CEO in 2020. The SEC also charged Hung with failing to disclose his beneficial ownership of the Company stock as well as transactions in such stock. Huang, through his attorney, Jacob Frenkel, Chair of the Securities Enforcement and Government Investigations Practice at the law firm, Dickinson Wright, PLLC, has responded to these allegations and has asserted Mr. Huang’s innocence.