- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-06-07T18:18:00
Food service distributor HF Foods Group agreed to pay a $3.9 million penalty as part of a settlement with the Securities and Exchange Commission (SEC) regarding alleged fraudulent conduct carried out by its former chief executive officer and former chief financial officer.
The settlement, announced in an administrative proceeding Thursday, follows charges the SEC levied earlier this week against former HF Foods CEO Zhou Min Ni and former CFO Jian Ming Ni. Zhou Min Ni agreed to pay a $300,000 penalty in settling, while Jian Ming Ni will pay $80,000.
From August 2018 through 2020, the former executives misappropriated approximately $3.4 million from HF Foods through related party transactions and other methods, the SEC alleged in its order. The executives also allegedly schemed to remove $7.4 million of liabilities from a predecessor company’s books as part of the process of HF Foods going public via a special purpose acquisition company.
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