Part 1: https://asianextractor.com/2015/02/10/potential-accounting-tunneling-fraud-at-china-environment/ Part 2: https://asianextractor.com/2015/02/17/potential-accounting-tunneling-fraud-at-china-environment-part-2/
Month: February 2015
US Sentences CEO of China Energy Company to 5 Years for Securities Fraud
http://www.laht.com/article.asp?ArticleId=2375156&CategoryId=12396
Posted by Jelvin Tan Xiang Rong, Year 4 undergrad at the School of Accountancy, Singapore Management University
SEATTLE — The Chief Executive Officer of an energy firm headquartered in Tukwila, Washington, was sentenced Friday in U.S. District Court in Seattle to five years in prison, three years of supervised release and a $10,000 fine for two counts of Securities Fraud, announced Acting United States Attorney Annette L. Hayes. Continue reading
Sebi bans company in Rs 1,700cr rigging case
Posted by LAM Xin Hui, Year 4 undergrad at the School of Accountancy, Singapore Management University
The Times of India
Feb 21, 2015, 12.35AM IST
NEW DELHI: The Securities & Exchange Board of India (Sebi) on Friday banned trading in little-known Kamalakshi Finance, while imposing restrictions on 33 entities, for what it believes was price manipulation of the order of Rs 1,700 crore, making it the 27th company where trading has been suspended. The move is part of Sebi’s efforts to check possible misuse of stock market trades to ramp up prices of shares allotted through preferential allotment. Continue reading
Investors–watch out for penny-stock ‘wolves’
http://www.ibj.com/articles/49058-kim-investors-watch-out-for-penny-stock-wolves
Posted by M Laavanya, Year 3 undergrad at the School of Accountancy, Singapore Management University
Kim: Investors–watch out for penny-stock ‘wolves’
August 16, 2014, Mickey Kim
Martin Scorsese’s 2013 “The Wolf of Wall Street,” based on convicted stock swindler Jordan Belfort’s memoir of the same name, made an over-the-top spectacle of the debauchery at Belfort’s “boiler-room” brokerage, Stratton Oakmont. The film also provided a rudimentary portrayal of how its “pump-and-dump” fraud was perpetrated on unwary investors. Continue reading
Voluntary Disclosure, Manipulation, and Real Effects
Posted by M Laavanya, Year 3 undergrad at the School of Accountancy, Singapore Management University
Voluntary Disclosure, Manipulation, and Real Effects.
BEYER, ANNE GUTTMAN, ILAN
Journal of Accounting Research. Dec2012, Vol. 50 Issue 5, p1141-1177. 37p. 1 Diagram, 5 Graphs.
Abstract:
We study a model in which managers’ disclosure and investment decisions are both endogenous and managers can manipulate their voluntary reports through (suboptimal) investment, financing, or operating decisions. Managers are privately informed about the value of their firm and have incentives to voluntarily disclose information and manipulate their reports in order to obtain more favorable terms when issuing equity to finance a new profitable investment opportunity. The model shows that treating managers’ disclosure and investment decisions both as endogenous and allowing managers to manipulate their voluntary reports yields qualitatively different predictions from when the disclosure and investment decisions are considered separately and managers cannot engage in manipulation. The model predicts that managers’ disclosure strategy is sometimes characterized by two distinct nondisclosure intervals (contrary to traditional threshold equilibria of voluntary disclosure models) and that managers with intermediate news sometimes forego the new profitable investment opportunity. As such, the paper highlights the importance of considering the interdependencies between firms’ disclosure and investment decisions and provides new empirical predictions.
[Flashback] Tesco Was Warned Months Ago That Its Accounts Were At ‘Risk Of Manipulation’
Posted by Latha Do NADARAJAN , Year 3 undergrad at the School of Accountancy, Singapore Management University
How do you mislay £250 million ($408 million)? Not a question that often comes to mind while searching for change down the back of a sofa, but it’s the question facing Tesco’s most senior managers today.
Tesco’s thin statement for its enormous accounting failure blames “accelerated recognition of commercial income and delayed accrual of costs,” but what does that mean? Continue reading
Stock Manipulation: Noble Explochem
http://www.moneylife.in/article/stock-manipulation-noble-explochem/40521.html
Stock Manipulation: Noble Explochem
19 February 2015
Moneylife
Despite no business activity since 2006, in just over a year, the price of Nobel Explochem shot up by 1235%
Established in 1982, Noble Explochem (Noble) was a leading manufacturer of nitro-glycerine-based explosives. In April 2004, the government prohibited the possession, sale and use of nitro-glycerine-based explosives, leading Noble to discontinue its manufacturing activities. Continue reading
U.S. bank exec ‘cooked the books’ to hide bad loans: prosecutor
http://www.reuters.com/article/2015/02/17/us-fraud-tarp-trial-idUSKBN0LL10G20150217
U.S. bank exec ‘cooked the books’ to hide bad loans: prosecutor
Tue, Feb 17 2015
By Dan Levine
OAKLAND, Calif. (Reuters) – The former chief operating officer of a major Chinese-American bank in San Francisco knowingly “cooked the books” in an effort to conceal deteriorating loans at the height of the 2008 financial crisis, a U.S. prosecutor said in court. Continue reading
SEC vs. Big Four, dust has yet to settle; Chinese subsidiaries of the world’s largest accounting networks proved too big to ban in their spat with the U.S. SEC
SEC vs. Big Four, dust has yet to settle
19 February 2015
Xinhua News Agency
By Xinhua writer Wang Zichen
BEIJING, Feb. 19 (Xinhua) — Chinese subsidiaries of the world’s largest accounting networks proved too big to ban in their spat with the U.S. Securities and Exchange Commission. Continue reading
The problem with related party transactions
The problem with related party transactions
Lee Kin Wai For The Straits Times, 18 February 2015
RELATED party transactions (RPT) feature prominently in many corporate scandals around the world.
For example, the top management team of Enron used special purpose entities to manipulate profit. Cable TV company Adelphia Communications Corp guaranteed related party debts and provided extensive loans to its top executives. Continue reading
AsianExtractor: Unearthing Accounting Fraud in Asia 