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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Airgead Clann, LLC Comments On A California Superior Court Ruling Involving Allegations Of Fraud Against A China Small Cap Company Director:

LOS ANGELES, April 2, 2012 /PRNewswire/ -- Fuqi International Inc. (symbol FUQI.PK) is a Chinese jewelry company that came to the United States capital markets in 2007 through a Reverse Take-over (RTO). But unlike many other RTO's Fuqi had big names promoting the stock, the likes of Oppenheimer, William Blair and SG Cowen.  They raised $150M from two stock offerings.  Since raising the money the company has gone the road of many of its peer group in the China Small Cap space.  They have not filed a financial statement in over 3 years, they were delisted from NASDAQ, they have a new CEO & CFO, they have not held an AGM as required by law and the SEC is investigating.  The company released news in March of 2011 that money was embezzled.  Since the news in March, the company press releases have been insignificant.

A disgruntled investor, Michael Patrick Kelly, controlling member, Airgead  Clann, LLC of Thousand Oaks, California, filed suit in California Superior Court in April of 2011: the presiding Judge was Craig D Karlan in Santa Monica California.  Mr. Kelly accused the Independent Directors of Breach of Fiduciary Duty, Negligence and Fraud.  In what would appear to be a slam dunk case, the judge shocked onlookers by throwing the case out of court without so much as a word of testimony or a document produced by the directors.  Karlan ruled the Plaintiff did not adequately plead fraud despite all the obvious evidence to the contrary.  One can only wonder what the Judge was thinking.

The investor, Michael Patrick Kelly of Thousand Oaks California, took a rather unique approach to dealing with directors of what appears to be another fraudulent Chinese Small Cap Company.  He flushed out the independent directors.  He called on them where they live, knocked on their doors and took statements.  He converted an otherwise fruitless derivative action into a direct action.  Astounded by the result Mr. Kelly commented, "I will keep the pressure on.  Our society must let board directors know they are not untouchable.  Everyone knows that derivative actions do not work because the path is simply silly – asking the board to sue themselves.  We must make the cases personal.  Occupy Wall Street is on to something.  Take the movement to the houses of the Wall Street rich cats. Picket their neighborhoods, knock on their doors.  Shine the light of shame on them.  But then find a judge with integrity and common sense. I will appeal this ludicrous court decision."



Stock quotes in this article: FUQI 

Select the service that is right for you!

COMPARE ALL SERVICES
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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