(ABC Nightline) Investigating Chinese Firms listed on American exchanges later found to be Frauds

Posted by Kendall Harmon

"Dozens of companies have been delisted from our exchanges due to economy irregularities and outright fraud," said Dan David, vice president of GeoInvesting, LLC, a firm that monitored the Asian investment craze. "They raised hundreds of millions, some companies, that is outright money that was taken from investors that they'll never see again."

[Mary] Schapiro said the SEC opened 40 cases against Chinese firms during her tenure, targeting financial schemes she described as "brazen" and "extraordinary." Schapiro, who stepped down in December, said that when she asked Chinese Vice Premier Wang Qishan for help during a trip to Beijing in July her requests were rebuffed.

"We haven't yet achieved a level of cooperation that makes it possible for us to get access to Chinese companies the way we need," Shapiro said. "We will fight hard to try to secure recovery for U.S. investors. But it's harder when we don't have the cooperation of the foreign government."

Read it all and watch the video report (recommended)

Filed under: * Culture-WatchGlobalizationLaw & Legal Issues* Economics, PoliticsEconomyCorporations/Corporate LifeStock Market* International News & CommentaryAmerica/U.S.A.AsiaChina* TheologyEthics / Moral Theology

Posted January 11, 2013 at 7:15 am [Printer Friendly] [Print w/ comments]

1. BlueOntario wrote:

Don’t expect much to change. We need the PRC to keep our government afloat more than they need to stop their “enterpreneurs” from scamming Americans.

January 11, 5:59 pm | [comment link]
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