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