China North East Petroleum Holdings Ltd, the country's first private oil company listed on the New York Stock Exchange, has been accused by the United States Securities and Exchange Commission of misappropriating millions of dollars.

This is the second allegation involving the company in the last three years due to an illegal transfer of funds. CNEP was de-listed from the NYSE on July 16.

According to the Wall Street Journal, the SEC alleged in the suit, filed in federal court in Manhattan, that executives from the company transferred funds it raised in two public offerings in 2009 to the chief executive's wife and mother, and the father of the company's vice-president of corporate finance, even though the company had said the funds would be used for corporate purposes.

The CEO's wife used $300,000 of the company funds to buy a house in California, the SEC said.

China Daily has tried to contact the company, but no one answered the phone. The company's website is also down for maintenance.

Founded in 2003, CNEP is located in Songyuan, Jilin province, and engages in crude oil production and mining. It merged with a US shell company and went public in 2004.

Contact the writers at wuyong@chinadaily.com.cn and liuce@chinadaily.com.cn