A little more than a month later, on March 24, it received a subpoena from the SEC. The agency's investigators are looking into whether China Century "made material misstatements or omissions concerning its financial statements, including cash accounts and accounts receivable," the company said in its 8-K filing. It added that it's "committed to cooperating with the SEC."

The allegations by MaloneBailey are eerily similar to those it made against another of its clients, NIVS IntelliMedia ( NIV). The firm resigned as that company's auditor last week. The NYSE Amex has also halted trading in NIVS shares, which last changed hands at $2.24.

The offerings of both China Century and NIVS were underwritten by WestPark Capital, an investment bank that has long helped small Chinese companies gain U.S. stock listings.

The shares of a third company, China Intelligent Lighting ( CIL), have also been under a trading halt since Friday. The company's underwriter and audit firm were WestPark and MaloneBailey.

-- Written by Scott Eden in New York

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