We shared this story of the Monkey in the Buddhist book Journey to the West.. he had to overcome various obstacles with the team in the journey of knowledge and education, including the powerful Centipede who had a thousand eyes that shone on Monkey, searing him very badly.. Badly hurt, he sought the help of Goddess of Mercy who directed him to Mother Hen god fairy who in turn passed him a special gift/weapon: the Needle. When the Centipede uses the thousand eyes again when they meet, Monkey uses the Needle which worked its way by poking the thousand eyes.
From the Buddhist interpretation to the book Journey to the West, this story is about how when we are accused and bullied by a powerful person who would use all sorts of diversionary tactics and scrutiny (eyes and mouths) to destroy us, the only way is the Needle, which stands for the Truth in public.
Consider this: A company uses cash to buy government bonds, subsequently depositing the bond in a bank, a seemingly very harmless transaction. Is this potential accounting fraud?
What is undisclosed is this company, Olympus, colluded with the LGT bank manager to use the bond as a collateral to lend to two shell companies created by Olympus. These shell companies then use the borrowed money to acquire toxic assets at cost from Olympus, thus allowing Olympus to avoid recognizing impairment losses on these underwater securities should they be marked to market in both the immediate period and in the long-term. Continue reading
Ex-CFO of China’s Longtop to pay $2.3 mln in U.S. investor lawsuit
20 June 2015
NEW YORK, June 19 (Reuters) – The former chief financial officer of Chinese technology company Longtop Financial Technologies has agreed to pay $2.3 million after a U.S. jury found that he acted recklessly in making untrue statements or omitting facts about the firm. The settlement with former CFO Derek Palaschuk was disclosed in papers filed in Manhattan federal court on Friday, seven months after the jury delivered its verdict in a rare securities class action trial. Neither a lawyer for Palaschuk nor the plaintiffs’ attorneys responded to requests for comment. The lawsuit, filed in 2011, was one of several cases launched around that time amid accounting scandals at Chinese companies trading on U.S. stock exchanges. When the New York Stock Exchange halted trading in Longtop in May 2011, the Xiamen-based company had a $1.08 billion market value. Days later, Longtop’s auditor, Deloitte Touche Tohmatsu CPA Ltd, resigned, citing “recently identified falsity” in the company’s financial records. Palaschuk, who had joined Longtop in 2006, tendered his resignation the same day. Before resigning, Palaschuk spoke with Longtop Chief Executive Officer Weizhou Lian. In an email presented at trial that talked about the call, Palaschuk said Lian “informed me the company had been a fraud since 2004”. In the lawsuit, lawyers for Longtop investors contended that Palaschuk missed “red flags” pointing to the fraud, but Palaschuck denied wrongdoing. Continue reading
John KoppischForbes Staff
FORBES ASIA 4/24/2013 @ 5:50PM 7,447 views
Cashing in on Pop Culture
If 2012 was the year the Korean Wave came ashore around the world, then certainly Lee Jay-Hyun made one of the biggest splashes. His CJ Group is big in Korean entertainment, and at a time when Korean movies and K-pop songs seem to be everywhere, that has helped goose the stock price. Lee’s wealth jumped 70%, to $1.7 billion, over the past year, riding an 84% leap in holding company CJ Corp.’s stock price. He moved up to No. 10 on the list, from No. 22 a year ago.
CJ was a darling of investors looking for a safe domestic play in an uncertain year for the customary locomotives of the Korean stock market, the big manufacturing exporters. Continue reading
Wed Jun 24, 2015 3:30am BST
EXCLUSIVE-Hanergy declines to disclose parent’s accounts to HK bourse -sources
HONG KONG, JUNE 24 | BY CLARE JIM
The Hong Kong bourse has asked Hanergy Thin Film Power Group (HTF) to hand over its Chinese parent company’s accounts before it will let the suspended stock trade again, but HTF is resisting the request, sources told Reuters. Two sources familiar with the matter said HTF is studying a proposal that as an alternative to disclosing the parent company accounts to Hong Kong Exchanges and Clearing Ltd (HKEx), HTF could buy parts of its parent, Hanergy Holding.
Hanergy Holding, which buys solar panel making machines from HTF and then makes solar panels for sale to third parties, accounted for two-thirds of HTF’s sales last year. Analysts say that makes HTF overly dependent on group sales, and since unlisted Hanergy Holding doesn’t publish accounts, it is impossible to know whether there is independent demand for the end product. The proposal from HTF would bring the entire supply chain and ultimate sale of solar panels into its own books, the sources said. Continue reading
Ministry of corporate affairs to notify threshold and rules for flagging corporate frauds
24 June 2015
The Economic Times
NEW DELHI: Auditors of companies may soon be required to alert the authorities in case of any fraud involving a sum of at least Rs 1 crore or 10% of a company’s turnover. This mandatory reporting is part of an early warning system being put in place by the government to prevent recurrence of a Satyamlike accounting scam. Continue reading
FSC to probe alleged stock fraud involving Zodic
Wednesday, June 24, 2015
TAIPEI–The chairman of the Financial Supervisory Commission (FSC, 金管會) said Tuesday that the FSC will launch an investigation into an alleged stock trading fraud involving biotech firm Zodic Light World Technology Inc. (兆良科技). Tseng Ming-chung (曾銘宗) made the comments after a securities trading fraud case surfaced in the local media, which reported that prosecutors have searched Zodic and its subsidiary and affiliates, while summoning 14 people for questioning over the alleged fraud. The FSC is the top financial regulator in Taiwan, supervising trading activity in the local financial market such as equity trading, banking business and the insurance sector.
Tseng said the FSC will find out whether Zodic disseminated false information about the company in a bid to lure investors into buying its shares and obtain large amounts of funds from the public. According to the local media reports, prosecutors in Taipei received a report from former Zodiac employees who said that the Taoyuan-based biotech firm took a large amount of money from investors since it claimed that the company has bright prospects. While Zodic described itself as a minimal invasive abdominal surgery device provider, prosecutors found that it is only a shell company and does not own any production facilities, according to the media report. The report cited prosecutors as saying that Zodic Chairman Lo Hsu-liang (羅祤亮) spent only NT$2 million (US$64,516) to set up the company in 2011, and borrowed money to inflate the paid-in capital to NT$300 million. Continue reading
SEC Freezes Assets of China-Based Trader for Suspicious Trades on Qihoo
The regulator cites suspicious timing and size of trades ahead of a $9 billion buyout offer
The U.S. Securities and Exchange Commission sign at its headquarters in Washington. The SEC froze assets of a China-based trader over suspicious activity ahead of Qihoo’s buyout offer. PHOTO: BLOOMBERG NEWS
June 23, 2015 10:26 p.m. ET
HONG KONG—The U.S. Securities and Exchange Commission got a court order Tuesday to freeze the assets of a China-based trader for suspicious activity ahead of a $9 billion buyout offer for a U.S.-listed Chinese Internet company last week.