Investing.com - Hong Kong-listed China Zhongwang Holdings Ltd (HK:1333) slumped more than 20% on Thursday in Asia after U.S. prosecutors charged the company owner of evading $1.8 billion in tariffs on aluminum shipped to the U.S.
Liu Zhongtian, owner and former chairman of Zhongwang was accused of lying to U.S. customs agents to evade duties imposed in 2011 on certain types of aluminum imported into the U.S. from China, according to a statement from U.S. Attorney Nicola Hanna.
“This indictment outlines the unscrupulous and anti-competitive practices of a corrupt businessman who defrauded the United States out of US$1.8 billion in tariffs due on Chinese imports,” prosecutors said in the statement.
"Moreover, the bogus sales of hundreds of millions of dollars of aluminium artificially inflated the value of a publicly traded company, putting at risk investors around the world."
According to Bloomberg, the prosecutors also allege Liu was behind a “massive” money-laundering scheme. He took a plea deal in exchange for cooperation with federal investigators, the article said.
Zhongwang Holdings’ shares last traded at $3.37 by 1:30 AM ET (05:30 GMT), down 16%. It was down as much as 22% earlier in the day.