Sat, Oct 25, 2014, 7:41 AM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

RINO International Corporation Message Board

  • tigerpac tigerpac Apr 5, 2010 11:22 AM Flag

    $3.5 million loan

    Ask Mr. Zou about that house he bought in Southern California for all cash. Why do you think there is a small branch office in Southern California being rented for $1695/mo?

    The question is why does he need a loan at all? Why not sell shares of his stock? Is he restricted from selling shares for a certain period? Interest free and no formal written loan agreement. How convenient. Just give me 3.5 million dollars now...I'll worry about the paperwork later....oh to have a public company be your personal piggy bank.

    <On December 7, 2009, the Company made a loan of approximately $3,500,000 to Mr. Dejun Zou and Ms. Jianping Qiu on an unsecured and interest free basis. As of the date of this Report, $300,000 has been repaid. Mr. Zou and Mrs. Qiu are directors and officers of the Company. There was no written loan agreement entered into by the parties regarding the foregoing.

    The making of this loan and the continuation of such indebtedness thereafter until it is fully repaid create a contingent liability for a possible violation of Section 13(k) of the Exchange Act (Section 402(a) of the Sarbanes-Oxley Act of 2002). Section 13(k) provides that it is unlawful for a company, such as the Company, which has a class of securities registered under Section 12 of the Exchange Act, to directly or indirectly, including through any subsidiary, extend or maintain credit in the form of a personal loan to or for any director or executive officer of the company.

    Issuers violating Section 13(k) of the Exchange Act may be subject to civil sanctions, including injunctive remedies and monetary penalties, as well as criminal sanctions. The imposition of any of such sanctions on the Company may have a material adverse effect on our financial position, results of operations or cash flows.


    Mr. Zou and Ms. Qiu have agreed to repay the loan on or before May 10, 2010. >

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • according the the 10-Q, Mr. Zou repaid the $3.5 million loan for his house purchase.

      What if that filing is actually false and the loan was, in fact,never repaid and only reported to tie up loose ends? Just a thought..I can't prove it..but IF the con is that elaborate, why would this be out of the ordinary.

      Why would the company owners purchased two large mansions and rent an office on one weekend and then never once come back to them?

      Something is very peculiar here.

    • Remember that house that Mr. Zou bought in Southern California last Dec?

      It was never occupied and is now back on the market for $4 million.

      In this market he will be lucky to get $2.5 million since he overpaid for a house that was going into foreclosure at the time.

      Maybe he will find a fellow countryman to sell to.

      Wonder how long it will be before his wife's (Ms. Qiu) house goes on the market here. She paid over $6 million and it has not been occupied since it was purchased. Perhaps they will move into this house if they ever decide to visit.

      • 1 Reply to tigerpac
      • The Muddy Waters report got the house in Orange County, CA correct. The house is still up for sale...no takers as it's priced way to high.

        As I reported many months ago, there is a second house in this community that was purchased by the wife for all cash (over $5MM I believe) that also has never been occupied.

        The husband/wife team also leased a small office in the area that has never been occupied. I beleive RINO stated in the 10-Q that it was a new regional office.

        To me, the question is: Are the revenues that RINO is reporting to the SEC false or are the revenues that RINO is reporting to the Chinese tax authorities false?

    • Repayment of CEO loan is due today. Of course, how does one know if anything will actually get repaid? Just because they need to mention it in the 10-Q doesn't mean that they won't offset that money with more stock options granted.

    • Just think about the reality TV show has spawned many spin-offs.

      I'd rather not name the community since i live there too and pass their houses every day.

    • This existance of this loan would explain the replacement of the CFO all by itself.

      You can't fire the CEO (who would legitimately claim ignorance of U.S. SEC rules and law) but you would definitely fire the CFO who let it happen, even if they were Chinese and forced to do it by the CEO.

      The Board would simply say: "Sorry, you should not have approved it."

      Anyway, the inauguration of a new CFO indicates that the days of this kind of nonsense are over. The background of the new CFO indicates he is too sophisticated to allow this type of Chinese cash manipulation (which happens under the table at all kinds of Chinese companies).

    • $3M is low by US standard but high by China.

    • The IRS would rule this as salary or a taxable bonus subject to FICA and Fed Inc taxes. PERIOD. I used to be an auditor. The ONLY way it could be considered a loan is if they were paying a reasonable interest rate. The article is correct in that it may constitute fraud. However, you would be surprised at how many high level people in corporations pretend like they don't know that no interest loan = income. Usually, they just get slapped with penalties and backup withholding. I don't know all the facts of this case, nor do I care. This is why I like trading. It's transparent. You either have losses or gains, and there is no hiding from them. True, you can avoid wash sales with assignment of securities, etc, but even if you factor in wash sales, for most people there isn't much of a difference.

      Like I mentioned few days ago, I thought RINO would drop significantly. I still would not buy it here, and I do not like companies that make dubious loans. This will continue to haunt this company. Your money is better spent somewhere else, IMO. This stock is still up from 2 bucks to 20 in a little over a year. Why hold onto a stock like this? So many other trades/companies to look at. I just can't figure the logic people have sometimes.

    • not good folks

      and we wonder why investors have no faith in chinese companies

      • 1 Reply to jack7157318
      • Plenty of loans of similar character were made to US CEO's until only a few years ago -- many completely forgiven by the Boards of Directors of those companies. I'm unfamiliar with Chinese companies and the precedent for such loans but it wouldn't surprise me if in fact they were routine. Now that the companies are listed on american exchanges, they will have to abide by the rules of the SEC. I'm not sure however that we can assume the worst intentions of the CEO in this case without all of the facts. If he repays the loan by May as promised, this should be a non-event regarding Rino's future prospects.

    • Who is Ms Qui?

    • So how low will this baby go? I am trying to prepare myself mentally so that I won't be tempted to sell and cover with the profits from EVERYTHING else in my portfolio! We will have a pull back around DOW 11,100. This baby could drop 2-3 more points during a general market pullback IMHO.

 
RINO
0.0010.000(0.00%)Oct 24 2:35 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.