The Securities and Exchange Commission charged SinoTech Energy Ltd., a China-based oil field services firm, and its top executives with allegedly lying about the value of the company’s assets and its use of millions in proceeds from its initial public offering.

The company overstated the value of its assets and top executives could siphon off millions of dollars, according to the SEC, whose civil suit filed in a U.S. district court in Louisiana.

The SEC said SinoTech promised to spend 120 million U.S. dollars raised in its November 2010 initial public offering on lateral hydraulic drilling units. However, the company bought 11 units valued at less than 17 million U.S. dollar while claiming to have bought 16 worth 94 million U.S. dollars.

Also, Chairman Liu Qinzeng confessed to stealing 40 million U.S. dollars from company account while executives in the company tried to hide this from investors, the SEC said.

The SEC also charged SinoTech’s CEO Xin Guoqiang and former CEO Zhang Boxun with fraud.

Shares of SinoTech were delisted from Nasdaq in 2011, one year after the company’s initial public offering, on alleged accounting scandal.