Auditors of companies may soon be required to alert the authorities in case of any fraud involving a sum of at least 10% of a company’s turnover as part of an early warning system being put in place by the government to prevent recurrence of a Satyam-like accounting scam

http://economictimes.indiatimes.com/news/economy/policy/ministry-of-corporate-affairs-to-notify-threshold-and-rules-for-flagging-corporate-frauds/articleshow/47777835.cms

Ministry of corporate affairs to notify threshold and rules for flagging corporate frauds

Rajat Arora

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 will launch an investigation into an alleged stock trading fraud involving biotech firm Zodic Light World Technology

http://www.chinapost.com.tw/print/439075.htm

FSC to probe alleged stock fraud involving Zodic
Wednesday, June 24, 2015
CNA

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

http://www.wsj.com/articles/sec-freezes-assets-of-china-based-trader-for-suspicious-trades-on-qihoo-360-1435112697

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

JACKY WONG

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.

Continue reading

Toshiba accounting problems extended to chip, PC ops: Nikkei

http://www.reuters.com/article/2015/06/22/us-toshiba-probe-idUSKBN0P22IF20150622

Mon Jun 22, 2015 7:57pm EDT

Toshiba accounting problems extended to chip, PC ops: Nikkei

Toshiba Corp’s semiconductor and personal computer businesses were also affected by accounting irregularities, which is likely to force the Japanese industrial conglomerate to revise down profit further, the Nikkei business daily reported. In May, Toshiba set up a third-party committee to expand a probe into other businesses after an internal investigation found accounting problems related to infrastructure and construction work. The company has said inappropriate book-keeping likely led to profits being overstated by about 54 billion yen ($438 million) in recent years. A Toshiba spokeswoman said the Nikkei report was not based on anything that the company had announced and that the third-party investigation was ongoing. The probe is expected to take until mid-July.

REXlot (555 HK): Betting on a Pipe Dream, by Anonymous Analytics; REXLot has used convertible bond offerings to finance dividends and acquire suspect companies with no discernable assets or operations

REXLot Holdings: Betting on a Pipe Dream,by Anonymous Analytics
  • We believe REXLot has made materially false representations to the market. Our analysis of third-party documents, SAIC filings, and market share data shows that REXLot generates only a fraction of the revenue it publicly reports.
  • REXLot’s de minimis  interest income suggests its publicly reported cash balance is grossly exaggerated.
  • Since 2010, REXLot has been cumulatively free cash flow negative. REXLot has used convertible bond offerings to finance dividends and acquire suspect companies with no discernable assets or operations