What FAB anounced in a PR on March 5, 2014:
"FAB Universal Board Announces Engagement of FTI Consulting by Loeb & Loeb to undertake Independent Investigation"
What it was changed to after viewing the report:
"FAB PROVIDES UPDATE ON INTERNAL INVESTIGATION"
This report must really be bad for them to change their mind and not make it an independent report where the details (good or bad) would be released regardless of the company's wishes. That is what an INDEPENDENT report is. After viewing it, they have made it an internal report and have only released a "summary" that is a real farce.
Their incompetence is amazing. The NYSE finally got it right, but it sure took them long enough:
"because the Company or its management have engaged in operations which, in the opinion of the Exchange, are contrary to the public interest. In reaching its decision, Staff considered Section 1009(a) of the Company Guide which states that it is necessary and appropriate for the protection of investors to immediately suspend trading in the Company’s Common Stock."
Not a smidgeon of evidence against them... lol.
= An investigation by FTI Consulting, one of the most prestigious forensic accounting firms in the world who does work for the top Firms and governments in the world at $500 per hour, can't be trusted
Who said they can't be trusted? Yet another straw man argument from you. The situation is FAB flat out lied and said this would be an independent investigation. That means that the results (good or bad) are released to the public. This was changed to an INTERNAL investigation. Hey, I believe FTI is capable of investigating things in China. So where is their report? Release their report instead of a few sentences put together by FAB that may or may not be taken out of context.
You are really clueless. Even the summary by FAB is horrible so just imagine what the report really states!
Good thing classes will be starting soon so you won't have to dwell on your FAB losses much longer.
That's a well-spoken characterization of the situation as Ibcb321 sees it. If I were FAB, I'd also engage a crisis management communication consultant and listen well to him. FAB's problem is not so much the facts as the perception of the facts.
It's amazing how a short-seller will distort information to fit their agenda. An investigation by FTI Consulting, one of the most prestigious forensic accounting firms in the world who does work for the top Firms and governments in the world at $500 per hour, can't be trusted but the kids Carnes pays $10 bucks to follow people around are spot on! LMFAO!
Heh, dumbo, it's all relative...
"You mean an internal investigation where the results are controlled by FAB and there will be no public disclosure of what was really found?"
Compared to the amateurs carnes hired and the propaganda machine he runs, the Loeb and Loeb and FTI independent pofessionals are like day and the Carnes gang is like night.
And you... a trooper in the dark forces.... I hope you have nightmares. It may show you are not completely dead inside.
=Verified, audited results by unbiased, prestigious, top professionals who work for Fortune 500 companies and governments
Really? What are these "verified, audited results"?
You mean an internal investigation where the results are controlled by FAB and there will be no public disclosure of what was really found?
=by unbiased, prestigious, top professionals who work for Fortune 500 companies and governments
LMFAO! What is "unbiased" about these paid reports? Loeb & Loeb has a reputation for protecting Chinese frauds. Read up on SCEI. They are another fraud that Loeb & Loeb defended only to have it confirmed they are a fraud and they have since abandoned their US shares.
You are clueless and you are going to learn the hard way about these Chinese frauds and the sleazy hired guns that defend them.
You point out a good point. Our resident idiot Ibcb321 gives equal value to the "research" conducted by the Carnes gang members, as he gives to much more authoritative finding by highly qualified and notable professionals, that is, Loeb and Loeb and FTI. Ibcb321 is nothing but a demagogue.
= I suggest anyone with a position in FAB go to the FTI web site and read about what FTI Consulting does and who their clients are.
Yes, examine this:
"Regarding FTI Consulting, the firm Loeb retained to verify the “kiosks” in Beijing, I can only say that
obviously the scope of the work they were hired to do appears to have been deeply flawed. They
should have been verifying the existence of the “media kiosks” in Beijing, which FAB had repeatedly
claimed amounted to 3,954 units. I would also point out that in 2011-2012 FTI was retained by
Shearman & Sterling to independently investigate my allegations against China Integrated Energy
(CBEH). I cooperated with FTI’s investigation, providing them with copies of all my time-lapse
images of CBEH’s shuttered biodiesel facilities. CBEH would later announce that the investigation
more or less “cleared” it of all wrongdoing. Nevertheless, CBEH failed to ever get its 2012 or 2013
financials audited even after downgrading its auditor two times. The SEC is now in the process of
deregistering CBEH so that it will never trade again on any U.S. exchange."
From a new A*L article just out. Not very well written, but gives enough information for people to verify.
=If you think the info is verified correctly as of 12/31/13
Explain again how they verified bank account balances on 12/31/2013 when they weren't even HIRED until months later? How come they haven't announced a true forensic accounting method where they have verified balances at the bank on different dates running to the present so funds couldn't merely be shuffled around?
They even lied about it being an INDEPENDENT investigation. It was an INTERNAL investigation. Big difference. We will never know what was REALLY found. It must have been REALLY bad for the "highlights" to be that the kiosks are nonoperational, pirated content is confirmed, the contract to maintain them lapsed last year etc. etc.
Your conclusion for the removal of the EY report is crazy. This conclusion is unsupported. Taking that EY document down is the only responsible outcome. the document is a controlled document. It should never have been posted in the first place, you idiot, if it is authentic or if is not authentic. taking the document does not change the value of any pertinent information there.
You see what you want to see. The only cogent "contradiction" you showed in this last post was between reality and your perception of reality. You are nitpicker who finds new nits to pick. But what about accuracy and meaning? Have they no value in your analysis?
And IBCB321 is partnered up with the Boss in SA "Following/Followers" and routinely posts in support there. Ibcb321 is an idiot. He is so stupid he's talking out both sides of mouth and thinks no one notices. here he says he's critical of Carnes. maybe critical Carnes does not give him enough attention or credit...
Verified, audited results by unbiased, prestigious, top professionals who work for Fortune 500 companies and governments all over the word vs. distortions, rumors and amateur investigations by blood sucking scam-artists who profit by manipulating share prices. Who do you choose to believe?
I won't bore this MB with a cut and paste but I suggest anyone with a position in FAB go to the FTI web site and read about what FTI Consulting does and who their clients are.
If after reading this you choose to believe that the cash in the bank or the kiosk count is unverified based on the claims of a short selling scam artist over one of the world's most prestigious forensic accounting practices then that's on you.
If you think the info is verified correctly as of 12/31/13 but that FAB decided to commit fraud AFTER that date with all the scrutiny they are under, good luck with that one too.
Instead of moving on, you want to make this personal and I have no problem continuing to wise up your fish as to what a fraud this is and how many contradictions and outright lies there are from FAB.
Ask the BCONQ and ABAT folks how wise it was to tick me off.
Yes, pettiness is a character flaw of mine. I have freely admitted to that.
Anybody notice this yet?
"This content was removed at the request of FAB Universal"
The EY report was taken down, but I knew that would happen. It PROVES that Spencer and Busshaus were aware of all these problems prior to the acquisition yet went through with it anyway.
This report informed them that there were most likely many related party occurrences with Zhang and other companies dealing with FAB which directly flies in the face of their most recent PR:
"No Evidence that FAB’s Chairman has an Undisclosed Controlling Interest (or any Interest) in Huzhong."
I would suggest that Loeb & Loeb and FTI Consulting both refer to the EY report. FAB already knew it was "likely" according to EY of this related party relationship and for them to claim there is "NO EVIDENCE" is yet another bald-faced lie when they had already received evidence in a previous report.
The lawsuits have been consolidated and there is a new Amended Complaint. According to the Pittsburgh Post-Gazette:
"Lawyers representing the shareholders filed an amended lawsuit Aug. 1, alleging the company issued false and misleading statements. In the complaint, lawyers said their investigation of the company’s kiosks in China corroborated Mr. Carnes’ claims that the company had exaggerated how many there were."
NOTE 17 - SUBSEQUENT EVENTS
Management has evaluated subsequent events through July 15, 2014, the date which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of March 31, 2014 have been incorporated into these consolidated financial statements, and besides the disclosures herein, there are no additional subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events”.
Really? They had NOTHING to add? How about this?:
The Company has not yet been able to renew the maintenance contract with Huzhong for the kiosks, which lapsed last year, and learned from the surveys that many of the kiosks did not function, either because of their condition or because they were not plugged in.
Did you notice they started to call them "Huzhong" now instead of "Huzhong Culture"? They are now trying to claim that Huzhong Culture is not a related party so they want to make the name appear different from what they have admitted is a related party controlled by Zhang:
Guangdong Endless Culture Co., Ltd.(GEC) - Affiliated Company controlled by the chairman and major shareholder
I'll bet that new kiosk company was really "bought" by Huzhong Culture. You hear that Carnes? Have your people look into that one.
"No Evidence that FAB’s Chairman has an Undisclosed Controlling Interest (or any Interest) in Huzhong. Huzhong is the entity that historically has maintained the kiosks in Beijing. It also is a significant owner of kiosks."
How much you want to bet the "significant ownership" of the Beijing kiosks is the 1,000 that came from the undisclosed acquisition. The filings at the local AIC offices should show the related party nature once and for all. Once more... Huzhong is Huzhong Culture which is remarkably similar to the Guangdong Endless Culture they disclose is controlled by Zhang.
There is a lot more. Like how come no big impairment to $60M of claimed "Goodwill" assets?
By the way, can you read Chinese? You probably need a translation from Liu Li (Unemon1) or other Chinese members in your group. Am I right?