lee through his company seems to have committed a massive fraud even worse than many thought. geo blew the lid on lpih and their research was right on. they are most probably right on here. they did not just make up everything out of the blue. they did the research and came to the conclusions. which for llen are looking like they are going to be true and llen was a massive fraud. it looks like they basically fabricated almost everything and lee was the mastermind and at this point it is unknown who else is in on it. it is hard to believe fong and robinson, in their positions could not have noticed anything. if they are innocent, then they just must have signed off on everything lee gave them, no questions asked or they are totally blind to not have noticed anything. but if they are innocent, it will be a miracle to save the company. lee faked the financials to such a degree, it looks like they have nothing much at all they earned over the last few years. more sec charges will build up making the first one look mild. they will have so many lawsuits and with a cancelled fa, no defense. and the cash access here in the states is probably minimal at best. lawyer fees alone will be massive. settlements massive. sec penalties huge. and if any of their agreements are valid at all they will have minimal revenue as the mines just started production this year. it will be nearly impossible to cover the expenses. and how will they ever report new financials. past financials are so fake they need to be all restated. that will take a lot of time to even figure out. and if the current executives are innocent, they can not use the past financials. they would have to report the true new financials or go to jail themselves in the future. and the new balance sheet would be just a shell of the former if they tell the truth. but they can not ever release new financials and tell the truth, without admitting that the past ones were all fake. will be hard to report in the future.
funny they had to go over to china to reassure employees and customers and cancel the forensic audit to use as their defense if innocent. after all, they have $8 million, plenty to finish the audit. and put robinson in charge of it. and besides, they are in operational control of the mines, so they can have their fake managers just reassure the employees. it is bs. might be that lee scammed a lot of the executives at the company and they thought it was all real and they are going to china to meet with the union energy people who will lay out their true agreement and find out at best they own a little equity or at worst nothing. so even if they try and report financials in the future, they would have to be booked as a passive investment because they never were in operational control of the mines that were not even producing last year.
also, it appears last year they reported almost $80 million in revenue from the closed hongxin facility and the fantasy taifung facility. will they report financials in the future based off the most certain faked past income and balance sheets and committ further fraud or admit the past was a hoax and report the new and true slimmed way down balance sheet. quite a rock and a hard place. admit the past or further the fraud. you probably will not see any new financials for quite awhile if ever.