http://www.thestar.com.my/Business/Business-News/2015/09/19/Incorrect-accounts-are-the-boards-problem/?style=biz

Incorrect accounts are the board’s problem

Saturday, 19 September 2015

By: ERROL OH

WHEN the accounts of a listed company turn out to be unreflective of the company’s financial performance and position, there are several options for enforcement action. The worst-case scenario (for those responsible for the accounts, that is) is when the regulators take court action that may lead to heavy punishment. Perhaps the best-known example began in July 2007, when three former top executives of Transmile Group Bhd were charged with abetting the cargo airline in making a misleading statement about reported revenue of RM338mil. This referred to the company’s quarterly report that contained the unaudited consolidated results for the financial year ended December 2006. If convicted, the trio – Gan Boon Aun, Lo Chok Ping and Khiudin Mohd – are liable to a fine of not less than RM1mil and a prison term of up to 10 years. Continue reading →

THE Department of Special Investigation (DSI) has filed criminal charges against Chai Bunnag and 11 accomplices over the alleged manipulation of Solution Corner 1988 (SLC) shares back in 2010.

DSI sources said notices have been issued for the accused to report to DSI officials by the end of this week. The investigation into this case moved forward after authorities found new evidence that was not known in 14 previous and related cases dropped by public prosecutors. Continue reading →

http://ftalphaville.ft.com/2015/09/10/2139813/fraudit-failure/

Fraudit failure

Dan McCrum

| Sep 10 10:45 | 1 comment | Share

If you’re thinking about stock fraud, you don’t want to do it in the US where the SEC has both prosecutorial power and a desire to exercise it.

One other point to consider from the SEC’s latest prosecution: it is possible to pursue individual auditors for missing signs of fraud they should have caught, without destroying the audit firm in a repeat of the Arthur Andersen collapse.

Washington D.C., Sept. 9, 2015 — The Securities and Exchange Commission today charged national audit firm BDO USA with dismissing red flags and issuing false and misleading unqualified audit opinions about the financial statements of staffing services company General Employment Enterprises. Continue reading →

http://www.nytimes.com/2015/09/11/business/dealbook/adviser-on-chinese-reverse-mergers-charged-with-fraud.html?emc=edit_dlbkpm_20150910&nl=business&nlid=36114517&_r=0

Adviser on Chinese Reverse Mergers Is Charged in a Securities Fraud Case

By ALEXANDRA STEVENSONSEPT. 10, 2015

Benjamin Wey has described himself as a “leading Wall Street American financier” who helped Chinese companies sell shares in the United States. Federal prosecutors call him something else: a “master of manipulation” who reaped tens of millions of dollars in illegal profits. The F.B.I. arrested Mr. Wey at his Manhattan home on Thursday and charged him with securities fraud, wire fraud, conspiracy and money laundering in an eight-count indictment unsealed in a federal court in Manhattan. Continue reading →

http://www.reuters.com/article/2015/09/11/us-usa-insidertrading-sec-idUSKCN0RB1Z820150911

Fri Sep 11, 2015 4:23pm EDT

SEC can pursue insider trading case against brokers: judge

NEW YORK | BY JOSEPH AX

Two New York stockbrokers must face civil insider trading charges brought by U.S. securities regulators, a U.S. judge ruled on Friday, despite a landmark appellate ruling that torpedoed the criminal case against them. Continue reading →