Probe news hits stocks in Pacific Andes stable: MAS, CAD investigating an offence under Securities and Futures Act
AUG 22, 20155:50 AM
SHARES in the Pacific Andes stable were sent reeling on Friday by news that the Monetary Authority of Singapore and the Republic’s white-collar crime investigation agency Commercial Affairs Department (CAD) are investigating an offence under the Securities and Futures Act (SFA). Continue reading
Related: (1) Scouring accounting footnotes to prevent tunnelling; (2) Is Your Forward-Looking Statement Safe Harbor Safe? Federal Appeals Court Reverses Dismissal and Revives Securities Fraud Class Action; Harman International Industries knowingly and recklessly propped up the stock price by making materially false and misleading statements about the company’s financial condition. In April 2007, Harman announced its potential acquisition by a private equity firm. In September 2007, however, Harman announced that the acquisition plan had been abandoned. (3) The trouble with non-binding takeover offers that create a false and manipulated ceiling for the target company’s shares which could be pledged or faced margin calls; There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt; (4) Jade’s ex-president jailed and fined over sham takeover bid to push up its share price; (5) China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK): Accounting Facts and Footnotes; (6) Taiwan’s MOF asks banks for details of Chinese loans to two troubled Chinese companies – Frankfurt-listed Chinese shoe company Ultrasonic AG whose executives disappeared with the loan and Golden Meditech (801 HK); TSU raises question of insider trading in Golden Meditech TDRs; FSC boss quizzed on Lien’s Golden Meditech TDRs; (7) 脐带血功效被夸大 中源协和 (Zhongyuan Union Cell & Gene: 600645 CH) 核心业务受困; 胎盘脐带血自费存储乱象; 脐带血：是生命种子，还是炒作噱头？“变了味”的脐带血; 脐带血保存，一场骗局? 血疑——上海市脐血库事件调查; Inside the Private Umbilical Cord Blood Banking Business: Wall Street Journal Analysis Found Dirty Storage, Leaky Blood Samples and Firms Going Under
CEFC: Discussions on JVs still ongoing
19 August 2015
Business Times Singapore
CEFC International, the fuel trader whose share price has shot up by more than ten-fold since mid-July, said in an update on Tuesday evening that discussions on its potential joint ventures are still ongoing.
“No definitive terms or formal legal documentation have been agreed, and no binding agreement in relation to the potential joint ventures has been entered into, at this stage,” said CEO and executive director Lu Da Chuan. “Shareholders and potential investors should exercise caution when trading in the shares of the company, as there is no certainty that the potential joint ventures will be agreed or that any similar transaction will materialise,” he said. Continue reading
Amtek unit bondholders look to move UK courts
Castex’s bondholders say firm’s stock price was pushed up to force a conversion of FCCBs into equity shares
Amtek’s problems are likely to affect several auto makers, including Maruti Suzuki and Tata Motors. Photo: Bloomberg
Mumbai: Troubles are building up at Amtek Auto Ltd, with bondholders of its subsidiary Castex Technologies Ltd looking to approach UK courts alleging manipulation of the company’s stock price. The bondholders say the stock price was pushed up to force a conversion of foreign currency convertible bonds (FCCBs) into equity shares.
Last week, shares of Amtek Auto fell 57% in response to the stand-off between the company and its bondholders and on fears of a liquidity crunch at the Delhi-based auto component firm. Continue reading
Rogue stock investors have no place to hide, says Hong Kong’s market regulator Mark Steward
PUBLISHED : Friday, 21 August, 2015, 1:20am
Cliff Buddle firstname.lastname@example.org
Cross-border cooperation to catch wrongdoers having an effect, outgoing SFC enforcer says
Stock-market manipulators who think they can exploit gaps in cross-border regulation will find there is “no place to hide”, the outgoing enforcement chief of the Securities and Futures Commission has warned. Continue reading
SFC’s outgoing crime fighter Steward warns successor to beware of nice people
UPDATED : Friday, 21 August, 2015, 1:40am
Enoch Yiu email@example.com
The Securities and Futures Commission’s outgoing white collar crime fighter Mark Steward denied he has been an aggressive regulator but warned his successor to be beware of people who are nice to them. Continue reading
Updated : 2015-08-20 21:01
Retail investors to file lawsuit against DSME
By Kim Jae-won
Individual investors will file a compensation lawsuit against Daewoo Shipbuilding and Marine Engineering (DSME) and Deloitte Anjin next month for allegedly committing accounting fraud, a law firm said Thursday. Continue reading
Stock manipulation: TCM
19 August 2015
TCM, a sick company with no revenues has shot up 291%
TCM was into production of chemicals used in industries. In 2004, it was declared sick and registered with the Board for Industrial and Financial Reconstruction (BIFR). All operations were closed as the net worth of TCM had been fully eroded. TCM has not reported any revenue from operations over the past 12 quarters. It reported an average net loss of about Rs30-Rs40 lakh in each quarter. Yet, over the past seven months, the stock has generated much trading interest. The stock price shot up 291%, to Rs82 on 10 August 2015, from Rs21 on 9 January 2015. Investment in TCM’s shares would have more than tripled in just seven months. On the BSE, trading turnover of the stock surged to Rs2 lakh per day in the first week of August 2015. On an average, the stock has reported a trading turnover of about Rs40,000 per day. Life Insurance Corporation (LIC) of India has a 23.7% stake in the company (currently worth Rs6.61 crore) while New India Insurance holds 1.46%. The insurance companies have remained invested in TCM for over a decade. TCM, with no revenues, has a current market-cap of around Rs28 crore. Will the regulator investigate the suspicious price movement and surge in trading volumes?
Sebi interim order bars 59 entities from trading
JAYSHREE P UPADHYAY Mumbai
21 August 2015
Bars the entities for alleged manipulation of the stock exchange route to evade taxes
The Securities and Exchange Board of India (Sebi) on Thursday passed an interim order against several wealthy investors, for alleged manipulation of the stock exchange route for evading taxes. Continue reading
Scouring accounting footnotes to prevent tunnelling
KEE KOON BOON
19 August 2015
Business Times Singapore
Framework needed to tackle insiders’ stealing of corporate wealth.
IMAGINE that the S-chip (Singapore-listed China stocks) fraud with its “missing cash phenomenon” and the penny stock scandal never happened – because there was a way to prevent them.
While accounting information and disclosures may be abused to deceive, instead of being used to inform, there is a countermeasure if one only looks for it. For fraud perpetrators actually, if inadvertently, leave behind a trace of their accounting transgressions in the footnotes of annual reports.