SEC Charges New York Based Shipping Company with Longstanding Internal Controls Failures 

ADMINISTRATIVE PROCEEDING
File No. 3-22424

Jan. 17, 2025 – The Securities and Exchange Commission today announced settled charges against Singularity Future Technology, Ltd., a publicly traded shipping and logistics company, for internal control and disclosure controls violations, as well as financial reporting violations and books and records failures.  

According to the SEC’s order, in each of its past eight fiscal years, Singularity has disclosed that its internal control over financial reporting and disclosure controls and procedures were ineffective and has reported multiple material weaknesses.  The order finds that these ineffective controls and material weaknesses, as well as the company’s failure to maintain required books and records, contributed to Singularity restating certain prior period financial statements in March 2023.  According to the order, Singularity has yet to remediate these material weaknesses.  

The order finds that Singularity violated Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-13, and 13a-15 thereunder.  Without admitting or denying the SEC’s findings, Singularity consented to cease-and-desist from further violations of these provisions, to pay a civil penalty of $350,000, and to comply with undertakings requiring that, among other things, Singularity remediate its material weaknesses and publicly report on that remediation.  If Singularity fails to comply with these undertakings, the order requires it to pay an additional civil penalty of $1 million.  

The investigation was conducted by Nicholas Karasimas, Lauren Sheridan, and Sandeep Satwalekar under the supervision of Thomas P. Smith, Jr., all of the New York Regional Office.