Since exposing SCEI we have successfully defended ourselves in a subsequent lawsuit, receiving a dismissal (from the bench) in The Supreme Court of the State of New York. To be clear, no longer being involved in a law suit is much better then defending oneself through three motions to dismiss.
Having said that, we feel strongly that allowing companies to get away with fraud is something that we were not willing to accept even after the suit was dismissed. After that “legal” debacle, however necessary or unnecessary investors feel it was and given SCEI’s history, we chose to continue to monitor future developments related to this company. In doing so, we continued to be disappointed by the all too obvious and blatant fraud being perpetrated against U.S. Investors.
On Monday May 21, 2012 NASDAQ halted trading for SCEI after which SCEI issued an 8k where it stated:
“…On May 18, 2012, Sino Clean Energy Inc. (the “Company”) was notified by local court authorities that its Dongguan production facility was to be closed pending the outcome of an ongoing lawsuit filed against Yongchang Paper Industry Co. Ltd. (“Yongchang”), a neighboring business.
As a result of the court order, since the afternoon of May 18, 2012, Company has been forced to suspend production at its Dongguan facility.
The Company is revisiting its 2012 earnings guidance and will revise its guidance to account for any effect that the Dongguan plant closure may have on the Company’s results of operations…”
As you will read, in an effort to appear transparent, SCEI is still caught lying.