Today asensio.com released five reports on Chinese reverse mergers. This continues on the research asensio.com began in April 2009 with reports on China Sky One Medical, Inc. (NASDAQ: CSKI) and American Oriental Bioengineering, Inc. (NYSE: AOB), and later reports on the involvement of two NASDAQ officials with Chinese reverse mergers.
Today’s reports cover: 1) an irregular relationship between certain former stock exchange officials and Benjamin Wey, a promoter of Chinese reverse mergers; 2) conflicts of interest on the part of a senior NASDAQ official surrounding Wey’s companies; 3) SEC and congressional investigations into Chinese reverse mergers; 4) NASDAQ’s new efforts to “incubate” Chinese companies to then list on NASDAQ; and 5) more accusations of fraud leveled against China Green Agriculture, Inc. (NYSE: CGA).
asensio.com was one of the first sources of research questioning the disclosures of Chinese companies listed in the US through reverse mergers. Beginning in April 2009, asensio.com published more than 20 reports on CSKI, which was later the subject of an SEC investigation. With reports on AOB, asensio.com was also one of the first sources pointing out inconsistencies between a Chinese reverse merger’s regulatory filings in China and the US. asensio.com reported its findings to the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board. Since that time there have been a growing number of fraud accusations leveled against US-listed Chinese companies, and the SEC and Congress have initiated independent investigations.
Links to the reports issued today are below:
The Questionable Involvement of Former Philadelphia Stock Exchange Officials with Benjamin Wey’s Companies.
Regulatory Conflicts-of-Interest at the Heart of Chinese “Madoff Scandal”
The SEC and Congress Begin “Wide-Scale Investigation” into Chinese Reverse Merger “Junior Madoff Scandal”
NASDAQ Seeks to “Incubate” Chinese Companies to Sell to US Investors.
CGA Accused of Fraud as the SEC Conducts an Informal Inquiry