China e-commerce site Alibaba reports fraud probe
Monday, February 21, 2011
SHANGHAI (AP) — Chinese e-commerce supplier giant Alibaba says two of its top executives are resigning to take responsibility after a probe discovered more 2,326 suppliers had defrauded online customers.
Alibaba said in a notice Monday to the Hong Kong Stock Exchange that its chief executive and chief operating officers, who were not implicated by the investigation, were resigning to take responsibility for the company’s “breakdown in integrity.”
The company said 100 sales representatives allegedly involved in defrauding customers were fired, but that no higher-level managers were suspected of wrongdoing.