China’s Luckin Coffee to pay $180 million penalty to settle fraud case

People wearing face masks walk by a Luckin Coffee store on June 29, 2020 in Yichang, Hubei Province of China.

Liu Junfeng | VCG | Getty Images

Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges for “intentionally and materially” overstating its 2019 revenue and understating a net loss, U.S. regulators said on Wednesday.

The U.S. Securities and Commission (SEC) fine on the China-based rival to Starbucks comes after it said earlier this year that much of its 2019 sales were fabricated, sending its shares plunging and sparking an investigation by China’s securities regulator and the SEC.

The SEC said it found that Luckin “intentionally and materially overstated its reported revenue and expenses and materially understated its net loss in its publicly disclosed financial statements in 2019.”

Luckin has not admitted or denied the charges, the SEC said. The company has agreed to pay

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German MPs grill ex-Wirecard boss over massive fraud

Markus Braun, the former chief executive of disgraced payments giant Wirecard, faced a public grilling by German lawmakers Thursday over the massive accounting fraud that brought down his firm.



a man wearing a suit and tie: Markus Braun, the former chief executive of collapsed payments provider Wirecard, will face German lawmakers on Thursday


© Christof STACHE
Markus Braun, the former chief executive of collapsed payments provider Wirecard, will face German lawmakers on Thursday

Wirecard collapsed in June after it was forced to admit 1.9 billion euros ($2.2 billion) missing from its accounts did not exist, and MPs have opened a full parliamentary inquiry into possible regulatory failings that allowed the cheating to go unnoticed for years.

Austria-born Braun began his testimony at the Bundestag lower house of parliament, which was also open to the media, at 1:30 pm (1230 GMT).

He had travelled to Berlin from the Bavarian city of Augsburg, where he is in pre-trial detention on suspicion of organised commercial fraud and market manipulation.

Absent from the proceedings was fellow prime suspect

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EU Watchdog Slams Germany for Lapses in Wirecard Fraud | Investing News

By Huw Jones and John O’Donnell

LONDON/FRANKFURT (Reuters) – Germany failed to do enough to avert the Wirecard fraud, the European Union’s markets watchdog said on Tuesday as it delivered a highly critical verdict on the country’s handling of its biggest post-war corporate scam.

Wirecard’s former Chief Executive Markus Braun and other executives have been held on suspicion of running a criminal racket that defrauded creditors of 3.2 billion euros ($3.73 billion).

Those accused, including Braun, deny any wrongdoing.

The European Securities and Markets Authority (ESMA) began a fast-track review in July into how Germany’s markets regulator BaFin and the country’s accounting watchdog the Financial Reporting Enforcement Panel (FREP) enforced EU transparency rules governing company information for markets and investors.

ESMA said in a rare 190-page rebuke of another regulator that it found a number of deficiencies, inefficiencies and legal and procedural impediments relating to BaFin’s independence from issuers and

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Luckin Coffee asked to reverse boardroom changes after co-founder’s ouster, as China prepares to wield big stick for accounting fraud

Luckin Coffee, the coffee chain dubbed as China’s Starbucks, has been asked by some shareholders to reverse some of its boardroom changes in July following the ouster of its co-founder and chairman, as Chinese regulators prepare to clamp down on accounting fraud.

Hong Kong-based Centurium Capital is seeking to reinstate Sean Shao as a director and remove Jie Yang and Ying Zhen as independent directors, the company said in US exchange filings on Monday. These would undo the changes that took place at a shareholders’ meeting on July 5.

The two independent directors, however, have resigned from the board with immediate effect, Luckin said in a separate filing. The duo were both reported by local Chinese media to be the nominees Haode Investment, the family trust of co-founder Charles Lu Zhengyao. Lu was separately removed as chairman at a board meeting on July 12.

Luckin has called for an

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