Former CFO appears in court following guilty plea

Mr Zhonghan Wu, also known as John Wu, former chief financial officer of Traditional Therapy Clinics Limited (TTC), appeared before the District Court of NSW on 19 February 2021, after previously entering a plea of guilty to market manipulation and fraud offences.

ASIC alleges that between 8 September 2015 and 30 November 2015, Mr Wu carried out multiple share transactions, using four separate share trading accounts, in order to create an artificial price for TTC shares on the Australian Securities Exchange (ASX).

Mr Wu’s trading occurred immediately after TTC’s listing on the ASX, following an initial public offering in August 2015 that raised approximately $15m through the issuance of 30 million TTC shares at $0.50 cents a share.

­ASIC further alleges Mr Wu carried out the transactions in order to maintain the share price above the IPO issue price of $0.50 per share.

In 2012 and 2015, Mr Wu obtained loans for mortgages to purchase various properties from the Commonwealth Bank of Australia (CBA). ASIC alleges that Mr Wu provided false and misleading documents to the CBA in support of these loan applications. The loan applications resulted in Mr Wu receiving funds totalling $390,000 in 2012 and $260,000 in 2015.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Mr Wu’s sentencing hearing is scheduled for 06 May 2021 at the Downing Centre District Court.

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