News Headlines. US News Page 1 of 3 | Next PageShow Entire Article FBI Raids Chinese Reverse Merger Shop CNBC.com | January 26, 2012 | 05:07 PM EST The FBI raided the offices of one of the biggest names in Chinese reverse mergers Wednesday, according to Roddy Boyd at The Financial Investigator.
From TFI : Investigators with the New York office of the Federal Bureau of Investigation raided the offices of Benjamin Wey’s New York Global Group yesterday, seizing documents and conducting interviews with employees. According to one NYGG official, Wey’s Manhattan apartment was also raided. Attempts to contact NYGG and Wey were unsuccessful; a man answering the phone at the firm’s 40 Wall Street offices refused to give his name and would only reply, when questioned about the raid, “No one is here right now.” The raid was in many ways surprising in that legal repercussions from the collapse of the China reverse-merger boom had been minimal, save for some occasional de-listing activity from exchanges. Anatomy of a Chinese Reverse Merger Scam. “All told, investors’ losses on these Chinese ventures have stretched into the billions.”
The New York Times is out with the definitive look at the Chinese reverse merger game (see: Red Collar Crime archives) and what its gradual dissolution has meant for markets and investors. RINO International, the poster child for Chinese corporate crookery, gets the spotlight in the piece… How companies like Rino wormed their way into the temples of American capitalism is a story for these financial times. Even amid the wreckage of the 2007-8 financial collapse, an ecosystem of Wall Street enablers — bankers, lawyers, entrepreneurs, auditors — spirited Chinese companies to the United States. With some deft financial maneuvers, these businesses essentially went public while sidestepping the usual rules.
The article spends some time on both who’s to blame as well as the mechanics of a reverse merger IPO. Head over the whole story, it is this weekend’s must-read. Source: Read Also: hat tip Barry. "Most Preposterous Chinese Reverse Merger Yet" Follow up: The Forensic Factor Responds To AUTC Management's "All Clear" Response. @ Forbes: Chinese Reverse Mergers: The Auditor Angle. My Forbes column today is about Chinese reverse merger companies and recent reports of potential frauds – plural.
I’ve waited to write about this issue, even though many many people have been keeping me up to date with cards, letters, and calls. There are others who have been doing a great job covering it in the meantime, including Eric Jackson of Ironfire Capital who also writes for The Street.com. The Farce of Small U.S. Auditors in China By Eric Jackson11/29/2010 2:30 PM ESTOver the last two weeks, a huge drama has been playing out with a small-cap China stock called RINO International (RINO – commentary – Trade Now). The wastewater filtration equipment provider to the Chinese steel industry was accused by Muddy Waters LLC of fraud earlier this month.
I waited for the inevitable case that implicated a Big 4 audit firm. Here’s an excerpt from today’s piece at Forbes. Both China Agritech and China Media Express are listed on NASDAQ because they are Chinese reverse mergers (CRM). Complete List Of All Chinese Reverse Merger Companies.