A report released today by asensio.com on American Oriental Bioengineering, Inc. (NYSE: AOB) shows that based on Chinese government filings, AOB may have made material omissions and misrepresentations in U.S. Securities and Exchange Commission (SEC) filings concerning two real estate transactions, totaling $104.9 million.
Based on discrepancies between AOB’s SEC filings and Chinese filings, it appears that AOB may have completed the two transactions with an undisclosed related party.
Filings with the China State Administration for Industry and Commerce and the Hong Kong Companies Registry show a relationship between AOB’s chairman and CEO, Tony Liu, and the private Chinese company that reportedly sold real estate to AOB for approximately $105 million. The Chinese filings are attached to the report with translations.
It does not appear that AOB took standard steps for related-party transactions to ensure that there were no irregularities in the $105 million expenditure. AOB’s auditors, independent directors and legal counsel were contacted, but have not provided any comment or explanation for the information contained in the asensio.com report.
Click here to read the asensio.com report, “AOB’s Potential Undisclosed Related Party Documented in Public Government Filings.”