Where the Fook Woo's management

Management disappears with books...

K&L Gates Partner steals $4m

"The money that I stole was used to pay my gambling losses that I have accumulated over the years. I was using one 'escrow' to cover the other. I don't know what the devil got into me. Sorry."

Sino Forest "Not the "Near Total Fraud""

Sino Forest says .. ."We can categorically say Sino-Forest is not the “near total fraud” and “Ponzi scheme” as alleged by Muddy Waters"

To see what a difficult task the Advisors to the Independent Committee had:

- Over 300 bank accounts, only checked 28 of them that contained 81% of the funds. Couldn't check the rest for overdrafts

- Forestry Bureau(s) not willing to confirm agreements since they may not be legal, or they may even be on SF's payroll.

- Third party AI and supplies not willing to provide any information

- Contracts based on verbal agreements and personal relationships

- Internal Sino Forest systems in a mess. Staff using third party email addresses and documents not backed up or deleted.

- Uncooperative management.

- and so on..

Given the extensive and amusing list of "challenges" the IC had in their investigation, Sino Forest management must be awarded top marks for creating such a positive spin in their release, which is certainly entertaining but not very reassuring to shareholders.

Interim report from the Advisors to the Independent Committee.

The ex Chairman/CEO/Founder Allen Chan and Mr Bowland an independent director and member of the 3 person team looking into the fraud allegations must have resigned for no reason at all.

Wanted: First Natural Fujian Fujitives (1076.HK)

Thieves wanted by the SFC - Dead or alive, preferably the former....

The SFC is trying to contact these people who it believes have information relevant to a current enquiry. If you know where they are or have information concerning them, please contact the SFC at (852) 2231 1000 or write toleadsplease@sfc.hk.
	Name: Yeung Chung Lung (楊宗龍) Nationality: Chinese Sex: Male Date of birth/ age: 7 September 1952 Place of Birth: China	Descriptive Information: He was the Chairman and Executive Director of First Natural Foods Holdings Ltd (HK listed stock code 1076, now in provisional liquidation) until his office was vacated on 27 August 2009. The 2007 annual report of First Natural Foods Holdings Ltd shows that he was a member of the Fujian Province Fuqing City Committee of Chinese People’s Political Consultative Conference (政治協商會議福清市委員會) and the Vice-president of the Fujian Province City General Chamber of Commerce (福建省福州市工商聯合會). He is the father and father-in-law of Yang Le and Ni Chao Peng respectively. Yeung is believed to be in Mainland China.
	Name: Yang Le (楊樂) Nationality: Chinese Sex: Male Date of birth/ age: Around 35 years old	Descriptive Information: He was the Chief Executive Officer and Executive Director of First Natural Foods Holdings Ltd (HK listed stock code 1076, now in provisional liquidation) from May 2001 to December 2008. He is the son of Yeung Chung Lung. Yang is believed to be in Mainland China.
	Name: Ni Chao Peng (倪朝鵬) Nationality: Chinese Sex: Male Date of birth/ age: Around 37 years old	Descriptive Information: He was the Executive Director of First Natural Foods Holdings Ltd (HK listed stock code 1076, now in provisional liquidation) from May 2001 to December 2008. He is the son-in-law of Yeung Chung Lung. Ni is believed to be in Mainland China.

O Chaoda, where art thou?

Annual report 6 weeks overdue.

Why would a few anonymous, disparaged reports of fraud drive one of largest agricultural companies into a lengthy suspension of trading? No idea where Mr Kwok Ho would be but a high probability that when trading restarts, along with the release of earnings, shorts will be burnt.

Why? The time in suspension would be spent on a cash gathering exercise to reassure the auditors that cash is really there. Borrowing on the underground, moving cash around, producing 'books' showing revenues and calling on favors. Weak shorts will be burnt, good time for longs to exit, stronger shorts will survive.

Wouldn't surprise if the chairman conveniently disappears.

One phone call. €982,000

c'est vrai, quoi!

On that day, Areva's then chief executive Yves Lapierre received a phone call from a man posing as a police inspector in France. The "inspector", who spoke perfect, accent-free French, told Lapierre he was investigating a credit card scam involving an Areva employee.

He said Lapierre needed to transfer €982,000 (HK$10.4 million) to Golden Longon to help the French police track down the credit card ring in Hong Kong. He gained the executive's trust by citing information about Lapierre's whereabouts and the first digit of his credit card.

Lapierre became suspicious only after he approved the fund transfer. He asked Areva's security department to verify the identity of the caller, which it was unable to do. Lapierre resigned in February last year, citing personal reasons.

Longon,.. long gone.

Chinese IPOs to hit record in Germany

Paraphrasing the laws of themodynamics: shit will sink to the lowest level of the toilet bowl (unless it floated in which case it will be on the HKEX).

Spot the dichotomy:

"The listing requirements in Europe are less stringent than other overseas markets such as the US, as they are trying to attract high-quality companies amid the current debt crisis," said WeiWei, an analyst at West China Securities Co in Shanghai. "That's why we see a number of companies have gone to Europe for listing."

Pan Sino 0502.HK

A coffee trader in Jarkarta listed on the HKex casino. Lots of cash, trading below book, increasing revs and profits. Last traded at 0.58 with 0.40 in cash/share.

Only problem is fraud resulting in suspension of the shares in 2007. Now the HKex is going to delist it.

What enforcement actions are the SFC/Hkex taking? ... Yes, they're heading out for their 2 hour dim sim session.

Real Gold 0246.HK

Here's another fetid diseased company listed on the HKEX, (Charles Li, where are you?). Oh yes, the auditor is Deloitte.

"Wu Ruilin, the controlling shareholder of Inner Mongolian miner Real Gold Mining, pledged a key subsidiary of the listed company as security on loans for some of his private businesses.
Even though he does not own all of Real Gold or sit on its board, Wu signed documents that posted Fubon Industrial, the vehicle holding all of Real Gold's mines, as security for a 240 million yuan (HK$288 million) borrowing facility with Shanghai Pudong Development Bank last October.

The pledge, which was disclosed by Fubon in filings with the mainland's State Administration of Investments and Commerce (SAIC), meant Shanghai Pudong bank may have been able to seize Real Gold's mines if Wu's private companies - part of his telecommunications-to-mining conglomerate Cosun Group - failed to repay their loans."

Hkex's CEO Charles Li Delusional

Matters in the HKEX are obviously dire when the esteemed CEO of the whorehouse manages to utter gems like this...

"The U.S.-listed Chinese companies running into accounting problems would not have been able to list in Hong Kong, Hong Kong Exchanges and Clearing Ltd (0388.HK) Chief Executive Officer Charles Li told cable network CNBC on Friday."


The fool should take some time to read about the frauds in his whorehouse happening under his watch.... Ocean Grand, Fuji, Chaoda, First Natural, Akai, ...

He follows it up with more pungent garbage:

"He added that while the U.S. exchanges are disclosure-based, the Hong Kong Exchange is prescriptive, requiring companies to do certain things before they list"

How was the IPO application of Resourcehouse approved when it had never had profits?

Longtop Auditor's letter

As always, cash is not cash in China. Fake cash, crooked bank officials, local authorities,..

Now how much of Chaoda's $3.0b rmb is actually there?

"As part of the process for auditing the Company’s financial statements for the year ended 31 March 2011, we determined that, in regard to bank confirmations, it was appropriate to perform follow up visits to certain banks. These audit steps were recently performed and identified a number of very serious defects including: statements by bank staff that their bank had no record of certain transactions; confirmation replies previously received were said to be false; significant differences in deposit balances reported by the bank staff compared with the amounts identified in previously received confirmations (and in the books and records of the Group); and significant bank borrowings reported by bank staff not identified in previously received confirmations (and not recorded in the books and records of the Group).

In the light of this, a formal second round of bank confirmation was initiated on 17 May. Within hours however, as a result of intervention by the Company’s officials including the Chief Operating Officer, the confirmation process was stopped amid serious and troubling new developments including: calls to banks by the Company asserting that Deloitte was not their auditor; seizure by the Company’s staff of second round bank confirmation documentation on 22 May 2011

bank premises; threats to stop our staff leaving the Company premises unless they allowed the Company to retain our audit files then on the premises; and then seizure by the Company of certain of our working papers.

In that connection, we must insist that you promptly return our documents.

Then on 20 May the Chairman of the Company, Mr. Jia Xiao Gong called our Eastern Region Managing Partner, Mr. Paul Sin, and informed him in the course of their conversation that “there were fake revenue in the past so there were fake cash recorded on the books”. Mr. Jia did not answer when questioned as to the extent and duration of the discrepancies. When asked who was involved, Mr. Jia answered: “senior management”."

Chaoda 0682.hk chart -24%

Yep, that dip corresponds to the company issuing a statement 'clarifying' an article in Next Magazine. The article basically says that land is missing, in it's investigation 5000mu turned out to be 500mu, covered in rubbish and in no condition to grow anything. Weather was unsuitable and land had been untouched for years. Supposedly technologically advanced equipment turned out to be old tractors, and (broken) scythes.

Ho the chairman purchases 1m shares. Chaoda repurchases 2.2m. Files on the same day in an obvious (or desperate) show of confidence.

46 companies permanently suspended on HKEX

The HK SFC as incompetent as ever....

"As of March 31, there were 46 companies whose stock has been halted for more than three months.

These include many that have not traded for over a year, with some cases stretching back longer.

Hong Kong has a long code of conduct for listed companies, known as the listing rules. But no Hong Kong government body or regulator has the power to levy criminal penalties or fines on company bosses who choose not to release accounts. In Britain, the Financial Services Authority can impose unlimited fines, while in Australia, the Director of Public Prosecutions has the authority to recommend jail terms for very serious breaches of disclosure requirements.

But when Hong Kong businessmen or mainland entrepreneurs fail to disclose important information, they can relax in the knowledge that a halt in share trading is probably the worst thing that will happen to them.

The result is that shares in companies that keep secrets stay suspended for a very long time. Unsurprisingly, getting stuck in zombie stocks for months, if not years, makes investors furious, as well as very scared.

"You know something is going horribly wrong, otherwise why would companies not publish accounts?" said Claude Tiramani, an emerging markets fund manager at Paris-based hedge fund Lutetia Capital. "But you cannot do anything about it. You cannot get your money out."

As Fraser Howie, a Singapore-based stockbroker and the author of Red Capitalism, put it: "These long-term suspensions are direct evidence the listing rules are a fig leaf, designed to make Hong Kong look well regulated when, in fact, it is not. You would not have all these immobile shares if the regulators or the government could compel companies to release information."

Stock suspensions can be costly for investors unlucky enough to hold a frozen share. If the wider stockmarket is rising, you are losing money. You cannot liquidate your position in a suspended share and put the cash in a stock that is likely to go up. The Hang Seng Index rose 58 per cent last year, so investors in Zhejiang Glass paid a big opportunity cost.

But as a spokesman for HKEx said, there is nothing the exchange operator can do.

"Shares that are subject to trading suspensions are allowed to resume trading only after the company provides sufficient information for investors to make sound investment decisions," he said. In other words, until a company agrees to publish information, shareholders' money stays stuck in a stock that cannot trade.

A spokesman for the Securities and Futures Exchange, which oversees the listing rules, did not respond to an email containing detailed questions."

Zhejiang Glass (00739) Nationalized

The first private company to listed as a H Share, no less is crashing with fraud and burning shareholders. The China state governments are stepping in and taking it's assets. In this case burning it's biggest shareholder the IFC a member of the World Bank Group.

Lasted traded at $2.48 with market cap of HKD$955m. Suspended trading on 20100503.

Last report 2009 (interim):

Net Assets of $2.79b

Interest bearing debt : $5.3b

Cash: $63m

What is Hong Kong's Securities and Futures Commission doing? ... Nothing, this is most useless and incompetent organization on the planet. Their focus it seems is on smaller, easier, local individual targets, like traders manipulating illiquid derivatives.

H Shares - China companies listed on the HK market are riddled with fraud paired with no non-existent enforcement by the SFC/HKEX, a pit covered with SFC's facade of governance, trap laid with shards of sharp bamboo spikes.

Chinese reverse mergers

Article from thestreet.com.. cash isn't cash in China.

"The alleged chicanery has followed a pattern, Qin says. In many instances, "bank employees are colluding with clients. The bank employee would provide us with falsified bank statements."

Yunnan Green-Land Biological Technology

YACF: Yet Another Chinese Fraud

"Yunnan Green-Land Biological Technology, a company traded on the SME board on the Shenzhen Stock Exchange, announced recently that chairman He Xuekui was detained by police for alleged cheating in the firm's initial public offering three years ago. Details of any fraud in the IPO have yet to be made public.

The chairman is the first company executive to have been arrested by police due to misbehaviour in a listing process.

The Green-Land case spooked investors, who fear that a series of similar scandals could be unearthed as the authorities step up investigations into questionable listed companies.

"It could result in another crisis of confidence, though it would not be as severe as the Guangxia scandal years ago," said Guotai Junan Securities analyst Shi Weixiang."

KPMG auditors chowing down with Hontex

scmp:

"Money Chow told the court that Sister Chan had given her an envelope with a box inside during a lunch in January last year.

"I refused to accept it as the company does not allow us to take gifts of more than HK$500," she told the court. "I considered the items inside the envelope could be valuable as Sister Chan tried to hide the envelope from the others"

SFC pulls one knuckle out

and prosecutes China Forestry ex CEO. Hopefully the SFC continues to do their job and and pursue the Chinese fraudsters across the border.

The High Court today ordered that interim freezing orders be continued over assets of up to $398,219,458 held by Li Han Chun, the former Chief Executive Officer of China Forestry Holdings Co., Ltd. (China Forestry) and his company, Top Wisdom Overseas Holdings Limited (Top Wisdom) (Note 1).

China Forestry Holdings 0930.HK

IPO'd 14 months ago, suspended and needs a good forest fire to flush out the shysters.

Following the tried and tested IPO flip.. boost the numbers with extraordinary income (property revaluations), IPO the stock to suckers and cash out.

In the offering document, the company claimed that it made net profits of 339 million yuan (HK$400 million) in 2006, 783 million yuan in 2007 and 5.8 billion yuan in 2008,

If it seems too good... it stinks. You can have all this and less on the HKEX. Brought to you this time by UBS and Cazenove.

First Natural 1076.hk: the fraud continues

Liquidators still cannot recover property from the former thieving directors. There has been fraud committed, the courts in some regions recognize that fraud has been committed, however there is no property rights and property in plain sight cannot be recovered. The liquidators cannot even get a hearing in Ningbo. What is the bunch of useless cocksuckers in the SFC/HKex doing?

"Since the appointment on 6 January 2009, Mr. Stephen Liu Yiu Keung and Mr. David Yen Ching Wai, the

Provisional Liquidators, have been investigating into the affairs of the Group and have taken all necessary
actions to preserve the assets and to assess the situation of the subsidiaries of the Company in the People’s
Republic of China (the “PRC”). However, without the assistance of the former Directors, Mr. Yeung and Mr.
Yang, who were the legal representatives of the subsidiaries in the PRC, the Provisional Liquidators would
not be able to proceed the same. As such, legal actions have been taken against Mr. Yeung and Mr. Yang in
respective regions in the PRC for the possible damages to the Group resulting from their illegal possessions
of the properties of the subsidiaries in the PRC, including but not limited to, the company chops and statutory
certificates of the subsidiaries in the PRC. The status of the court cases as at the date of this report is as follows:
(i) Fuqing Longyu Food Development Co., Limited (“Fuqing Longyu”)
The Provisional Liquidators were informed by the PRC legal adviser, based on his recent visit to the
Administration of Industry and Commerce in Fuqing (福清市工商行政管理局) (the “Fuqing AIC”) in May
2010 and to the Foreign Trade and Economic Cooperation Bureau in Fuqing (福清市對外貿易經濟合作
局) (“Fuqing FTECB”) in July 2010, that the changes of the board and the legal representative of Fuqing
Longyu have not been effected despite the enforcement notices having been issued to both authorities
by the Fuzhou Intermediate People’s Court (福州市中級人民法院) of Fujian Province, the PRC.
As such, the Provisional Liquidators have written to the Fujian Provincial Department of Foreign Trade
and Economic Cooperation (the “Fujian FTECB”) (福建省對外貿易經濟合作廳), the Hong Kong Economic
and Trade Office in Guangdong of the Government of the Hong Kong Special Administrative Region (the
“HKETO”) (香港特別行政區政府駐粵經濟貿易辦事處) and the Ministry of Commerce of the PRC (中華人
民共和國商務部) informing the difficulties encountered and seeking their assistance in replacing the board
and the legal representative of Fuqing Longyu and are awaiting their replies.
The Provisional Liquidators were informed by the Fujian Branch of Bank of China (“BOC Fujian”)(中國
銀行－福建省分行) in the PRC that the BOC Fujian had obtained a judgment against Fuqing Longyu in
relation to a loan granted to Fuqing Longyu and is taking steps to dispose of certain collaterals to repay
the loan. Since the replacement of the board and the legal representative of Fuqing Longyu has not been
effected by Fuqing AIC, the BOC Fujian has not provided the Provisional Liquidators with the details of the
abovementioned legal action.
(ii) Jia Jing Commercial (Shanghai) Co., Limited (“Jia Jing (Shanghai)”)
After consulting the PRC legal advisers, the Provisional Liquidators are taking appropriate steps to apply
for re-issuance of company chops and statutory certificates of Jia Jing (Shanghai).
(iii) Ningbo Dingwei Food Development Co., Limited (“Ningbo Dingwei”)
First China Technology Limited, a subsidiary of the Company and the immediate holding company of
Ningbo Dingwei, attempted to file a statement of claim with the Ningbo Intermediate People’s Court
of Zhejiang Province (the “Ningbo Court”) (浙江省寧波市中級人民法院) but the filing was denied by the
Ningbo Court. The Provisional Liquidators have been collating further evidence and are taking appropriate
steps to prepare a revised statement of claim to be filed with the Ningbo Court.