This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Another Resignation for China MediaExpress

(China MediaExpress story updated from March 17.)

NEW YORK ( TheStreet) -- More details emerged in the China MediaExpress (CCME) brouhaha late Thursday when the company filed its form 8-K with the Securities and Exchange Commission, detailing the recent resignations of its auditor and CFO.

Beset by fraud allegations since January, China Media said in the filing that one of its key directors, Dorothy Dong, had also resigned.

Dong is a managing director and head of China investments at C.V. Starr Investment Advisors, the fund belonging to Maurice "Hank" Greenberg, which had acquired a large stake in China Media and was its biggest backer. Small investors who had bought China Media shares looked to Starr's 8.8% stake -- which must have resulted from stringent due diligence, the thinking went -- as a validation that the company was a legitimate and fast-growing enterprise.

A spokesman for Starr declined to comment.

>>China RTO Stocks Slide After China Media Bombshell

China Media's stock remains halted. Its former auditor, the Hong Kong affiliate of Deloitte, said in its resignation letter that it had "lost confidence in the representations of management (which underpin any audit)." The quote comes from Dong's resignation letter, in which she cited Deloitte's correspondence. Letters from both Dong and the outgoing CFO, Jacky Lam, were appended to China Media's 8-K filing. China Media didn't include the letter from Deloitte, choosing only to summarize its content in the 8-K filing itself.

According to China Media in the 8-K, "There were no disagreements between Ms. Dong and the Company that resulted in her resignation."

Except one thing: "Ms. Dong's resignation letter indicated that she disagreed with the conduct of the Company's management resulting in Deloitte's resignation and the resistance of the management to some protective measures that she and other independent directors proposed at a board meeting held on March 13."

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
CBEH $0.11 8.37%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs