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

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%

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

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

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

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

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

India Analyst Is Jailed After Negative Report Questioning Corporate Governance and Accounting: Rare Arrest Seen Causing a Chill on Market Coverage

http://www.wsj.com/articles/india-analyst-is-jailed-after-negative-report-1418359350

India Analyst Is Jailed After Negative Report: Rare Arrest Seen Causing a Chill on Market Coverage

GEETA ANAND

Dec. 11, 2014 11:42 p.m. ET

GURGAON, India—Complaints filed by one of India’s biggest property and financial-services groups after a negative report about it more than two years ago have landed the report’s co-author, accountant Nitin Mangal, in jail.

The group, Indiabulls , says the report, which questioned its corporate governance and accounting, was full of lies and was used for extortion purposes. Mr. Mangal’s lawyer says the report was based on public information, was accurate and wasn’t used to try to scare money out of anyone. Continue reading