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Bob111
Registered: May 2002
Posts: 6433 |
04-12-12 04:42 PM
i'm on #4 of summary and i think SEC shoud really f** E trade first. for opening such accounts
i like the firms names over there..Rainbow yield..Fancy think limited 
Rainbow Yield!
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Options12
Registered: Sep 2011
Posts: 550 |
04-12-12 05:30 PM
Quote from Bob111:
i'm on #4 of summary and i think SEC shoud really f** E trade first. for opening such accounts
Yeah, this is just one of several very recent cases involving fraud by Chinese using online brokers.
See also: http://sec.gov/litigation/complaint...p-pr2012-54.pdf
43. In January 2012, Yang founded Prestige under the law of the British Virgin Islands.
44. On March 13, 2012 - just two weeks before Zhongpin's announcement of Zhu's proposal to take the company private - Yang opened a brokerage account in Prestige's name at Interactive Brokers.
45. Between March 15 and March 21, 2012, Yang transferred $29.8 million from an overseas account at China Construction Bank into Prestige's account at Interactive Brokers.
46. This $29.8 million amount was far in excess of the net worth that Yang disclosed on his account opening statements and is wildly out of profile considering Yang's disclosed income of $52,500
47. Prestige used the funds in its Interactive Brokers account to purchase over 3 million shares of Zhongpin stock in the two weeks before Zhongpin's announcement of Zhu' s proposal to take the company private.
48. At the close of trading on March 27,2012 - the first trading day after Zhongpin's announcement - Prestige had earned unrealized gains ofover $7.6 million on its timely purchase of Zhongpin stock.
49. The equity trades placed by Prestige represented about 41% ofthe trading volume of Zhongpin stock during the two-week period before the March 27, 2012 announcement, and about 8% of Zhongpin's total outstanding common stock.
50. Prestige's March 2012 trading in Zhongpin stock is highly suspicious given (a) the timing of Yang's opening ofa brokerage account for Prestige (just two weeks before Zhongpin's public announcement), (b) the high volume and fortunate timing of Prestige's purchases, (c) the fact that the $29 million that fueled the Prestige account is wildly out of profile given Yang's disclosed net worth and income, and (d) the evidence of coordinated trading activity with Defendant Chang (discussed in ~~ 83-86 below).
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nkhoi
Moderator
Registered: Aug 1999
Posts: 8803 |
04-13-12 12:50 PM
how it works over there;
"Then there are members of the extended Bo clan.
On Thursday it was learned that Mr. Bos older brother, Bo Xiyong, has for nine years served under an assumed name as executive director and deputy general manager of China Everbright Holdings, a state-owned company that controls one of Chinas major banks and an array of other businesses.
Under the name Li Xueming, Bo Xiyong receives a $1.7 million annual salary and holds stock options worth nearly $25 million, according to a profile maintained by Bloomberg Businessweek."
-The New Yorks Times
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Options12
Registered: Sep 2011
Posts: 550 |
04-16-12 12:42 AM
China struggles with market regulation:
http://www.reuters.com/article/2012...E83E0FP20120415
In a brokerage lobby in downtown Shanghai, Ms. Gen, a 63-year-old retired clerk, watches the ticker board, hoping the shares she bought last year will tick up enough that she can unload them at an acceptably small loss.
"I was so angry, I felt like I was going to spit up blood," Gen said, ruing the losses on some of her stocks over the past couple years, when Shanghai's market was one of the world's worst performers, and wishing she had cut her losses sooner.
"I'm stuck," she said, a phrase echoed by others, also retirees, who countered the tedium of checking stock prices by chatting with friends or knitting. Gen declined to give her full name for fear of reprisals by local officials.
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