Month: December 2014

Tesco Faces Fresh Accounting Investigation; Auditor PWC Gets Unseasonal Greetings for Tesco and Barclays Roles

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http://www.ft.com/intl/cms/s/0/98e02452-89c8-11e4-9dbf-00144feabdc0.html#axzz3MgxREgZN

http://www.wsj.com/articles/tesco-faces-fresh-accounting-investigation-1419244965

http://blogs.wsj.com/moneybeat/2014/12/22/pwc-gets-unseasonal-greetings-on-tesco-and-barclays-roles/

http://www.businessinsider.sg/jpmorgan-releases-damaging-note-on-tesco-2014-12/#.VJUkSF4AKw

Tesco Faces Fresh Accounting Investigation

U.K.’s Financial Reporting Council Launches Probe

Tesco disclosed earlier this year that it had overstated its first-half profit forecast. REUTERS

IAN WALKER And COSTAS PARIS

Updated Dec. 22, 2014 8:34 a.m. ET

LONDON—The U.K.’s Financial Reporting Council on Monday said it has launched an investigation into Tesco PLC’s accounts for fiscal 2012, 2013 and 2014, following the recent accounting scandal at the supermarket chain. Continue reading →

Meet Joe Lewis – The $200 Million “British Madoff”; Trader Joe Lewis in fraud inquiry disappears after walking out of police station

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http://www.zerohedge.com/news/2014-12-21/meet-joe-lewis-200-million-british-madoff

http://www.telegraph.co.uk/news/11305953/Trader-goes-missing-after-130m-of-clients-cash-disappears.html

http://www.ft.com/intl/cms/s/0/403d8c36-89e6-11e4-8daa-00144feabdc0.html#axzz3MgxREgZN

Meet Joe Lewis – The $200 Million “British Madoff”

Tyler Durden on 12/21/2014 18:15 -0500

In an oddly familiar echo of Bernie Madoff’s massive ponzi collapse, The Telegraph reports, a currency trader has vanished along with £130  million in investors’ cash in an alleged fraud that could be one of the biggest in recent British history. Joe Lewis, 59, is being investigated by police over almost $200 million which he claimed was in clients’ accounts (incluidng professional footballers and golfers) but now no longer exists. In a stunning email sent to clients 2 weeks ago, Lewis admitted that his company – JL Trading – had stopped operating in 2009 (after suffering heavy losses on disastrous FX trades), adding that “I have covered up my mistakes from everyone including my staff, no one else knew what was happening.” The father of two has since failed to answer emails and phone calls, and at his Istanbul apartment a doorman said he had not been seen for a few weeks. Continue reading →

China Investigates Possible Stock-Price Manipulation, a move that serves as a stark reminder of the problems that have long haunted Chinese stocks

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http://www.wsj.com/articles/china-investigates-possible-stock-price-manipulation-1419231997

China Investigates Possible Stock-Price Manipulation

Move Follows Recent Surge in Chinese Share Market

China’s markets regulator is investigating possible manipulation of the country’s stock market, following a recent surge in Chinese stocks. Here, a man flies a kite in Shanghai, with the city skyline behind. AGENCE FRANCE-PRESSE/GETTY IMAGES

LINGLING WEI

Updated Dec. 22, 2014 4:10 a.m. ET

BEIJING—China is investigating possible stock-price manipulation amid the recent run-up in the country’s equity market, according to officials with direct knowledge of the matter, a move that serves as a stark reminder of the problems that have long haunted Chinese stocks. Continue reading →

The fund that was too good to be true: Money manager F-Squared used a hot ETF strategy to collect billions. But the numbers didn’t add up. F-Squared admits to fraud charges, will pay SEC $35 million

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http://fortune.com/2014/12/22/wall-street-sec-fsquared/?xid=nl_fortune

The fund that was too good to be true

Stephen Gandel

DECEMBER 22, 2014, 6:00 AM EST

Money manager F-Squared used a hot ETF strategy to collect billions. But the numbers didn’t add up. Continue reading →

Citigroup Was Wary of Metals-Backed Loans; Bank Forged Ahead in a China Commodities Market Now Roiled by Fraud Allegations; State logistics firm Sinotrans suspends share trading after media reports of fraudulent inventory management

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http://www.wsj.com/articles/citigroup-was-wary-of-metals-backed-loans-1419194646

Citigroup Was Wary of Metals-Backed Loans

Bank Forged Ahead in a China Commodities Market Now Roiled by Fraud Allegations

CHRISTIAN BERTHELSEN and SARAH KENT

Updated Dec. 21, 2014 7:54 p.m. ET

LONDON— Citigroup Inc. pushed forward on a series of ill-fated metal financing deals in China despite internal warnings about the risks, leaving it exposed to losses that could take a big bite out of its growing commodities business. Continue reading →

Supermax CEO charged with insider trading, shares fall 16.5%

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http://www.thestar.com.my/Business/Business-News/2014/12/16/Supermax-CEO-charged-with-insider-trading-Glove-maker-shares-fall-165-following-news/?style=biz

Supermax CEO charged with insider trading, shares fall 16.5%
Tuesday, 16 December 2014
By: QISHIN TARIQ, NG BEI SHAN

Thai (centre) arriving at the KL Sessions Court
KUALA LUMPUR: Supermax Corp Bhd CEO Datuk Seri Stanley Thai was charged at the Sessions Court here with insider trading related to Supermax’s former associate APL Industries Bhd (APLI).
Thai Kim Sim, 54, also known as Stanley Thai, claimed trial to communicating insider information to remisier Tiong Kiong Choon, 54, that was expected to have a material effect on the price and value of APLI. Continue reading →

Vincent Tan – The history and IPO of 7-Eleven Malaysia

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Vincent Tan – The history and IPO of 7-Eleven Malaysia

By YEO Shan Rui

Tan Dato’ Seri Vincent Tan Chee Yioun (commonly known as Vincent Tan) is the owner of Cardiff City Football Club and the Berjaya Group in Malaysia. The success of his empire can be traced back to the untendered privatization of Sports Toto from the government of Malaysia in 1985 . Being one of three legalized lotteries operators, the cash flow has allowed him to diversify and build his conglomerate.

In the past 1 year, a number of his companies have attempted an IPO – Caring Pharmacy, Berjaya Auto, 7-Eleven Malaysia, MOL Global and Sports Toto Trust. While there have been speculation on the various reasons for the IPO spree, let’s focus our attention on 7-Eleven Malaysia.

Multiple rounds of listing and delisting

What’s make 7-Eleven Malaysia interesting was their history of numerous IPO and privatization attempts. Vincent Tan bought over the 7-Eleven franchise from Antah Holdings in 2001 through his Berjaya Group Berhad. Continue reading →

Ex-Longtop CFO Blamed for ‘Foundation of Lies’; An investor lawsuit accuses a CFO of ignoring signs of fraud when he signed off on financial results, but the CFO says he believed they were accurate

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http://ww2.cfo.com/fraud/2014/11/ex-longtop-cfo-blamed-foundation-lies/

Ex-Longtop CFO Blamed for ‘Foundation of Lies’

An investor lawsuit accuses a CFO of ignoring signs of fraud when he signed off on financial results, but the CFO says he believed they were accurate.

Matthew Heller

November 21, 2014 | CFO.com | US

The 2010 and 2011 financial results of Longtop Financial Technologies were a “foundation of lies,” an attorney for union pensioners and investors told jurors in the trial of a securities class action against the Chinese company’s former CFO. Continue reading →

Lumena New Materials, a Chinese chemicals company that has come under attack from short sellers, has said the negative research has caused it difficulties to maintain the support of its banks, creditors and suppliers

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http://www.ft.com/fastft/244751

http://www.emersonanalytics.co/downloads/Lumena-HK_0067-Delisting.pdf

https://glaucusresearch.com/wp-content/uploads/downloads/2014/03/GlaucusResearch-China_Lumena-HK_0067-Strong_Sell_March_25_2014.pdf

http://www.ifrasia.com/china-pair-raise-alarm-for-lenders/21139477.article

http://www.scmp.com/print/business/china-business/article/1465116/lumena-denies-allegations-fraud

(67) Lumena: China Lumena New Materials Corp announced, based on the information provided by the Company’s senior management team in the PRC subsequent to the issuance of the reports by certain research groups against the Group in March and April 2014 as described in the announcement of the Company dated 3 April 2014, the Company has encountered difficulties in maintaining the continual support from, among others, local banks in the PRC, creditors and suppliers, which has impacted the Group’s operations. As a result, the Group can now only maintain a low level of production of its major products of thenardite and polyphenylene sulfide. The Company has been in discussions with several industrial peers and other third parties on possib le co-operation arrangements for the PPS and thernardite business operation and the Group and its creditors have been in discussions with a view to agree on a debt stabilisation programme for the Group’s outstanding borrowings, including but not limited to extension of the repayment dates and refinancing of the existing loans Continue reading →

Accountants Increasingly Use Data Analysis to Catch Fraud Vs When Using Math to Catch Crooks, You Can’t Jump to Conclusions

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http://online.wsj.com/articles/accountants-increasingly-use-data-analysis-to-catch-fraud-1417804886

http://blogs.wsj.com/numbers/when-using-math-to-catch-crooks-you-cant-jump-to-conclusions-1870/

Benford

Accountants Increasingly Use Data Analysis to Catch Fraud

Auditors Wield Mathematical Weapons to Detect Cheating

JO CRAVEN MCGINTY

Updated Dec. 5, 2014 6:48 p.m. ET

When a team of forensic accountants began sifting through refunds issued by a national call center, something didn’t add up: There were too many fours in the data. And it was up to the accountants to figure out why. Continue reading →