Duoyuan Global CFO Park to Resign
The allegation was that Rino didn't have as many customer contracts as it had claimed. The company's CEO soon told auditors that the charge was partly true, admitting that two customer contracts had not been signed. Rino's CEO also said there might be problems with 20% to 40% of its other customer contracts. The stock was delisted from the Nasdaq as a result.
Shortly after Muddy Waters published a story on March 2 titled "CCME: Irrefutable Evidence of Fraud," China MediaExpress (CCME) announced that its auditor and CFO resigned. On Monday, China MediaExpress announced that the Nasdaq notified the company that it is "exercising its discretionary authority" to suspend trading in the stock on April 12.
On the other hand, Orient Paper (ONP), Muddy Waters' first target, ultimately determined its accounting was clean after a long investigation into accusations of fraud and misappropriation. However, Orient Paper on March 23 disclosed that its 2008 financial results were audited by a firm that didn't have an accounting license.
-- Written by Robert Holmes in Boston.
>To contact the writer of this article, click here: Robert Holmes.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV