This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SEC in Fraud Probe of China RTO Duoyuan Printing

Stocks in this article: DYP CGA FUQI CSKI CCME

Some Chinese companies have disclosed SEC inquiries of various sorts, including China Green Agriculture (CGA), China Sky One Medical (CSKI), Fuqi International (FUQI) and now Duoyuan Printing.

Duoyuan's troubles began last September, when the company dismissed its auditor, the Chinese affiliate of Deloitte, the Big Four firm. According to Duoyuan, Deloitte's auditors had asked to review original bank documents so they could "verify the identity of certain individuals and entities associated with third party distributors and vendors."

Duoyuan refused and then fired the firm. It has yet to find a replacement. Meanwhile, the company's share price has tanked by more than 80% from its highs of about $10, set last year.

Deloitte discovered other problems as well. During its audit of company financials, "Deloitte received information regarding certain distributors and vendors that appeared inconsistent with certain information that the Company had provided," Duoyuan said in its filing.

Last year, amid the burgeoning scandal, which also saw the resignation of Duoyuan's CEO, CFO and the chair of its audit committee, the company's founder and chairman had a conference call with investors. "We're hearing suggestions that our company may be a fraud," he said during the call. "It is a very serious suggestion, and I want to be clear from the start that this is false. I'm confident that when the independent investigation is completed, these suggestions will be shown to be completely and totally untrue."

Based in Beijing, Duoyuan Printing sold shares on the NYSE in November 2009 in an offering underwritten by Roth Capital and Piper Jaffray.

-- Written by Scott Eden in New York


>To contact the writer of this article, click here: Scott Eden.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs