Typical Chinese mentality (Lying).

Posted in the Banking Forum

Since: Jul 11

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#1 Oct 6, 2013
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22833 / October 4, 2013
Securities and Exchange Commission v. China MediaExpress Holdings, Inc. and Zheng Cheng, Civil Action No. 1:13-cv-00927 (D.D.C.)
Court Enters Final Judgment by Default Against SEC Defendant China Mediaexpress Holdings, Inc.

The Securities and Exchange Commission announced that on October 3, 2013, the Honorable Ellen S. Huvelle, United States District Court Judge for the District of Columbia, entered a final judgment by default against Defendant China MediaExpress Holdings, Inc.(China Media). The final judgment permanently enjoins China Media from future violations of various provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act. The final judgment also holds China Media liable for total combined disgorgement and prejudgment interest of $41,894.082.05 and a civil monetary penalty in the amount of $7,250,000.

On June 20, 2013, the SEC filed a complaint against China Media and its Chairman and CEO, Zheng Cheng (collectively, the "Defendants") alleging that from at least October 2009, the Defendants engaged in a scheme to mislead and defraud investors by, among other things, grossly overstating China Media's cash balances. The complaint alleged that after China Media materially misrepresented its financial condition and business operations, its stock price tripled to more than $20 per share, making the company attractive to the investing public and allowing it to raise more than $53 million from stock sales to investors.

For further information, please see Litigation Release Number 22731(June 20, 2013)[SEC Charges China-Based Company and CEO in Latest Cross Border Working Group Case].

Since: Jul 11

Location hidden

#2 Oct 6, 2013
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22819 / September 26, 2013
Securities and Exchange Commission v. Chan Tze Ngon and Jiang Xiangyuan, Civil Action No. 13-cv-6828 (S.D.N.Y.)
The Securities and Exchange Commission today charged the former CEO of an education services provider based in China with stealing tens of millions of dollars from investors in a U.S. public offering, and charged another executive with illegally dumping his stock in the company after he helped steal valuable company assets.
The SEC alleges that ChinaCast Education Corporationís former CEO and chairman of the board Chan Tze Ngon illicitly transferred $41 million out of the $43.8 million raised from investors to a purported subsidiary in which he secretly held a controlling 50 percent ownership stake. From there, Chan transferred investor funds to another entity outside ChinaCastís control. Chan also secretly pledged $30.4 million of ChinaCastís cash deposits to secure the debts of entities unrelated to ChinaCast. None of the transactions were disclosed in the periodic and other reports signed by Chan and filed with the SEC.
The SEC further alleges that Jiang Xiangyuan, ChinaCastís former president for operations in China, avoided more than $200,000 in losses by illegally selling approximately 50,000 ChinaCast shares after participating in the ownership transfer of one of companyís revenue-generating colleges before it was publicly disclosed by a new management team. ChinaCast had a market capitalization of more than $200 million before these alleged frauds came to light. After Chan and Jiang were terminated and their misconduct was publicly disclosed by new management, ChinaCastís market capitalization dropped to less than $5 million.
According to the SECís complaint filed in federal court in Manhattan, ChinaCast entered the U.S. capital markets through a reverse merger in December 2006, and its common stock was listed on the NASDAQ from Oct. 29, 2007 to June 25, 2012. ChinaCast conducted multiple public stock offerings in the U.S., with the second one occurring in December 2009 when ChinaCast represented that the proceeds would be used for ďworking capital, future acquisitions, and general corporate purposes.Ē Chan instead directed and engaged in the transactions that moved investor funds outside ChinaCastís corporate structure for his personal benefit. He did so without seeking or obtaining the approval of ChinaCastís board of directors, and the transactions were not publicly disclosed until ChinaCastís new management prompted the company to file a Form 8-K on Dec. 21, 2012, disclosing Chanís misconduct.
The SEC alleges that ChinaCast falsely stated in multiple SEC filings signed by Chan that the company indirectly owned 98.5 percent of ChinaCast Technology (HK) Limited ó the purported subsidiary to which Chan first transferred investor funds.

Since: Jul 11

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#3 Oct 6, 2013
However, ChinaCast actually held only an indirect 49.2 percent interest while Chan personally owned 50 percent. Chan also signed a number of periodic reports falsely stating that offering proceeds were under ChinaCastís control and falsely including those funds in amounts that ChinaCast reported as cash and cash equivalents. Chan also defrauded shareholders and prospective investors by secretly pledging ChinaCastís existing term cash deposits as collateral to secure debts incurred by various third parties that had nothing to do with ChinaCastís business. Chan signed periodic reports falsely stating that ChinaCastís cash and cash equivalents were completely unencumbered.
According to the SECís complaint, Jiang was a member of the senior management group headed by Chan. Jiang engaged in illegal trading based on inside information by selling his shares on March 28, 2012, at $4.59 per share. After Chanís management group lost control of the board, they transferred ownership of ChinaCastís three profitable brick-and-mortar colleges away from ChinaCast to Jiang and the dean of one of the colleges. They were later sold to others. At least one of the colleges was transferred to Jiang and the dean three weeks before Jiangís March 28 stock sale. Jiang was terminated on March 29, and NASDAQ suspended trading in ChinaCast on April 2 due to its failure to file an annual report for 2011. ChinaCast was later delisted. When over-the-counter trading resumed on June 25 after multiple disclosures made by new management about former managementís misconduct, the stock opened at 55 cents per share and closed at 82 cents. ChinaCastís stock is currently trading at 10 cents per share.
Chan is charged with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 as well as violations of various corporate reporting, recordkeeping, and internal controls provisions. Jiang is charged with illegal insider trading in violations of the same antifraud provisions. The SEC seeks disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, permanent injunctions, and officer-and-director bars.
A Justday

Buffalo, NY

#4 Oct 6, 2013
A whole bunch of baloney: Guess who is the single largest Foreign holder of US Debts..China has contributed $ 3.5+ Trillion USD (20%) at the present time and is the Second largest holder of US debt behind the US Social Security Trust Fund!!

David Cheever is known the Thief and Robber to wreck up the fine social stability of American System...Good Riddance!

Since: Jul 11

Location hidden

#5 Oct 6, 2013
And do you know how the Chinese made their money? The old fashion way....The stole it.
A Justday wrote:
A whole bunch of baloney: Guess who is the single largest Foreign holder of US Debts..China has contributed $ 3.5+ Trillion USD (20%) at the present time and is the Second largest holder of US debt behind the US Social Security Trust Fund!!
David Cheever is known the Thief and Robber to wreck up the fine social stability of American System...Good Riddance!
The Senate Democrats

Buffalo, NY

#6 Oct 6, 2013
David Cheever and David Cheater, you are the expert in stealing!!!

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