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SEC Halts Illegal Reverse Merger

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The Securities and Exchange Commissionannounced charges against a Toronto-based consultant and four associates for their part in an illegal Chinese reverse merger scheme. The SEC alleges that the team acquired controlling interests in two U.S. public shell companies in order to orchestrate reverse mergers with China Auto Logistics Inc. and Guanwei Recycling Corp. and then hired stock promoter Shawn A.

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