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Late audits halt trading in Morgan Stanley-backed stocks Tianhe Chemicals (1619 HK) and Sihuan Pharmaceutical (460 HK)

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http://news.yahoo.com/audits-halt-trading-morgan-stanley-backed-stocks-045755275.html

Late audits halt trading in Morgan Stanley-backed stocks

Jeff Horwitz

Associated Press

30 March 2015

WASHINGTON (AP) — Two major companies in a prominent $1.4 billion Asia investment fund managed by New York banking giant Morgan Stanley unexpectedly told securities regulators they will not file their financial statements on time and froze trading in their stocks, actions generally considered to be cause for concern. The publicly traded companies, Tianhe Chemicals Group Ltd. and Sihuan Pharmaceutical Holdings Group Ltd., separately announced late last week that they would be unable to meet Hong Kong Stock Exchange deadlines because auditors have not yet signed off on their financials. Both companies pledged to cooperate with the auditors.

Tianhe and Sihuan are valued at $3.7 billion and $6 billion, respectively. They are among 16 companies that comprise a private equity fund managed by Morgan Stanley & Co. LLC, known as Morgan Stanley Private Equity Asia Three, or MSPEA III. An Australian and an Indian company owned by that fund have already failed amid criminal and civil fraud allegations. Continue reading →

Leading offshore financial centres have been told to rethink their opposition that they create a central register revealing companies’ ultimate owners

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http://www.ft.com/cms/s/0/57b53cc4-d4af-11e4-8be8-00144feab7de.html#axzz3VeSOjVUz

March 27, 2015 7:27 pm

Tax havens told to drop opposition to UK call for central register

Vanessa Houlder

Leading offshore financial centres have been told to rethink their opposition to David Cameron’s demand that they create a central register revealing companies’ ultimate owners.

The government has told the British Virgin Islands and the Cayman Islands to set out specific timetables for implementing central registers or similar systems by November. It has also written to Bermuda, which already has a central register, asking it to make the information more accessible to law enforcement agencies. Continue reading →

Preparing for the Regulatory Challenges of the 21st Century by SEC Commissioner Luis Aguilar

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http://www.sec.gov/news/speech/preparing-for-regulatory-challenges-of-21st-century.html#.VRPWovmUeCk

Preparing for the Regulatory Challenges of the 21st Century

Commissioner Luis A. Aguilar

Georgia Law Review Annual Symposium
Financial Regulation: Reflections and Projections
University of Georgia, Athens, Georgia

March 20, 2015

Thank you, Professor [Carol] Morgan, for that kind introduction. It is a great honor to be here at the Georgia Law Review’s Annual Symposium. Before I begin my remarks, however, let me issue the standard disclaimer that the views I express today are my own, and do not necessarily reflect the views of the U.S. Securities and Exchange Commission (“SEC” or “Commission”), my fellow Commissioners, or members of the Commission’s staff.

Continue reading →

A pump-and-dump scheme straight out of a textbook; B.C. Securities Commission issues sanctions on a cut-and-dried case of market manipulation

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http://www.theglobeandmail.com/report-on-business/streetwise/a-pump-and-dump-scheme-straight-out-of-a-textbook/article23526405/

A pump-and-dump scheme straight out of a textbook; B.C. Securities Commission issues sanctions on a cut-and-dried case of market manipulation

ADRIAN MYERS

19 March 2015

The Globe and Mail (Breaking News)

Where stocks are frequently traded in liquid markets, making money on them requires a super-power that probably doesn’t exist. To make money (consistently, that is) in Google stock, you’ve got to be better at analyzing information about Google than thousands of highly paid analysts and traders who themselves can’t beat each other consistently. And if you find someone who has this power, it will cost you a lot of your money to have them invest it for you. And you probably haven’t found them. If you don’t want to believe me, believe Cliff Asness and John Liew (http://www.institutionalinvestor.com/Article/3315202/Asset-Management-Equities/The-Great-Divide-over-Market-Efficiency.html).

Alternatively, you could find a stock that is lightly traded, round up a bunch of buddies, buy a large position in that company, trade that stock amongst yourselves to push up the price, then find someone who will buy the artificially inflated stock and book a flight to Mexico. Continue reading →

Drug and Device Makers are Being Hit With More Securities Fraud Lawsuits

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http://blogs.wsj.com/pharmalot/2015/03/18/drug-and-device-makers-are-being-hit-with-more-securities-fraud-lawsuits/

Drug and Device Makers are Being Hit With More Securities Fraud Lawsuits

Ed Silverman

19 March 2015

Dow Jones Institutional News

Shareholders routinely file lawsuits seeking class-action status against companies alleging securities fraud, but the life sciences industry is attracting more than its share, according to a new analysis. Continue reading →

Who is watching the Hong Kong’s Securities and Futures Commission and Asia’s Regulatory Authorities?

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http://www.scmp.com/print/business/companies/article/1747266/who-watching-securities-and-futures-commission

Who is watching the Securities and Futures Commission?

Wednesday, 25 March, 2015, 11:13pm

The Securities and Futures Commission needs to take a long hard look at itself following the recent conclusion of the Andy Mantel fiasco which we wrote about on Tuesday. Its behaviour and the manner of its investigation were nothing short of disgraceful and its bully-boy approach to dealing with minor issues needs to be rectified. Continue reading →

Iceberg: “Not the first time we acted as whistleblower against Noble”; “Had the MPA acted on the information sent to them, this high-profile bankruptcy of OW Bunker… could certainly have been avoided”; “Iceberg’s research is based on public information released by Noble themselves. We consulted our lawyer and we are extremely confident.”

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http://www.businesstimes.com.sg/companies-markets/iceberg-not-the-first-time-we-acted-as-whistleblower-against-noble

Iceberg: ‘Not the first time we acted as whistleblower against Noble’

Melissa Tan

24 March 2015

Business Times Singapore

OBSCURE outfit Iceberg Research said in its third report on Noble Group that this is not the first time that it is acting as a whistleblower against the commodities trader. Referring to the bankruptcy of Danish bunker supplier OW Bunker in 2014, it claimed that a member of Iceberg had in 2013 “reported Noble’s commercial practices in Singapore to the Maritime Port Authority (MPA)”. It alleged that “Noble had been associated with some less than reputable local companies” and that while “the decision was taken by MPA not to renew (Noble’s bunkering) licence”, Noble was not fined. Iceberg also said that its member later informed MPA that the supposed “illegal activities” had continued, Noble was allegedly “still involved”, and the unnamed “local companies” in question had become major bunker suppliers in Singapore. Those “local companies and people that our colleague had reported to the MPA were directly responsible for the fraudulent bankruptcy of OW Bunker” in 2014, Iceberg claimed. “Had the MPA acted on the information sent to them, this high-profile bankruptcy… could certainly have been avoided.” OW Bunker, the world’s biggest bunker supplier and Denmark’s second-biggest listed company by revenue, filed for bankruptcy in November 2014, blaming fraud by two senior employees at a Singapore-based unit, Dynamic Oil Trading. It estimated the alleged fraud to be worth US$125 million, and also reported a US$150 million risk management loss. OW Bunker went into liquidation after its banks refused to extend credit. Noble, which has filed a suit in Hong Kong, said in a Singapore Exchange statement on Monday in response to Iceberg’s claims that “we reject their allegations as inaccurate, unreliable and misleading”. The MPA did not respond to Iceberg’s allegations by press time. Continue reading →

Getting Fugitives Back to China ‘Requires Better Evidence-Collecting Skills’; Money recouped from fugitives totaled more than 3 billion yuan in 2014

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http://english.caixin.com/2015-03-20/100793251.html

03.20.2015 18:20

Getting Fugitives Back to China ‘Requires Better Evidence-Collecting Skills’

Government must improve its ability to conduct investigations in order to convince countries to hand over corrupt officials who fled, legal expert says

By staff reporter Sun Wenjing

(Beijing) – China is taking its fight against corruption beyond its borders in a bid to make more of its fugitives answer for their crimes, but a professor of international criminal law says these efforts will test its ability to collect evidence and coordinate different departments. The Ministry of Public Security announced a campaign in July that it dubbed Fox Hunt 2014, which is aimed at catching people suspected of committing economic crimes. In January, the ministry said the six-month campaign netted 680 criminals from 69 countries. Continue reading →

KPMG cooked 1MDB’s books, Sarawak Report says

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http://www.themalaysianinsider.com/malaysia/article/kpmg-cooked-1mdbs-books-sarawak-report-says

Posted by LEE Wenhong, Year 3 undergrad at the School of Accountancy, Singapore Management University

KPMG cooked 1MDB’s books, Sarawak Report says

Published: 21 March 2015 11:30 AM

Whistleblower site Sarawak Report says auditor KPMG cooked the books when auditing strategic investor 1Malaysia Development Berhad (1MDB). – The Malaysian Insider file pic, March 21, 2015.Whistleblower site Sarawak Report has published documents allegedly showing that global auditor KPMG cooked the books when auditing the debt-ridden strategic investor 1Malaysia Development Berhad (1MDB). Continue reading →

Audits alone can’t solve all

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http://www.thestar.com.my/Business/Business-News/2015/03/21/Audits-alone-cant-solve-all/?style=biz

Audits alone can’t solve all

Saturday, 21 March 2015

BY: ERROL OH

Not all audits are created equal. We need to ask questions

BRINGING in the auditors – or at least, promising or threatening to do so – seems to be the standard response to a controversy or a dispute these days. That’s a good thing for the audit industry because it enhances its profile and reflects the high regard for the profession. Continue reading →