Seattle U.S. District Judge Richard Jones sentenced the former CEO to the prison time, followed by three years of supervised release and a $10,000 fine.
According to Reuters, the 66-year-old executive pleaded guilty last September and also in January to counts of securities fraud. Prosecutors have said that Lee falsely reported the existence of a chief financial officer in a U.S. Securities and Exchange Commission (SEC) filing as part of an effort to get a stock exchange listing.
Lee also reportedly issued 730,000 stock shares to unidentified third-party investors, subsequently instructing them to sell the units to generate revenue for L&L. The executive had not disclosed, however, that an existing probe into the company had already commenced through the SEC; as a result, he is facing a civil case by the agency.
Yet another case, an investor class-action suit, was also filed against Lee for misconduct; that suit was recently settled but is currently awaiting a judge’s approval.
L&L’s operations are primarily in China and Taiwan.
