It just surprised me. Before now, I didn't know that Derek Palaschuk (the disgraced CFO of Longtop) and Tom Gurnee (CFO of XIN) had worked so closely together their entire careers.
Side by side, their resumes are almost identical:
1. SOHU. About 1998 through 2003-ish, Gurnee was CFO at SOHU; during that time, Palaschuk was his #2 and was named as his successor when Gurnee left.
2. LONG. Beginning in March (Palaschuk) and November (Gurnee) of 2004, they both served on eLong's board of directors until Palaschuk took the CFO job there. Gurnee still serves on this board.
3. Longtop. From Sept, '06 thru May '11, Palaschuk was Longtop's CFO. I don't know the exact date he started, but around that time, Gurnee also joined Longtop as a member of the Board of Directors and Chairman of its Audit Committee. Gurnee was with Longtop from '06 or '07 thru May '11, when Longtop was unmasked as a fraud.
4. SEC. The SEC chose Gurnee and Palaschuk to be the two winners in the "Immunity in exchange for your testimony against everybody else" sweepstakes in the Longtop criminal proceedings, currently ongoing.
Since Palaschuk is considered toxic like a nuclear dumping site and will probably never work in finance again, I'm guessing the fact that Gurnee's shared a close association with him in 3 different companies is a fact the market probably doesn't love.
Mind you, this one doesn't bother me at all. I've always had esoteric friends that I wouldn't want to judged by.
I told you that months ago Hmmm and told you to look at the relationship between board members on a number of Chinese stocks. I also called it the ole boys network and to look at their schooling as well. A very tight little group.
longer than just the chinese stocks... I believe the associations go to the Tiger fund and Tiger cub activity...
That said, I'm really happy to see XIN buying US property and having a US-based CFO -- the more assets and folks in the U.S., the better it is for shareholders as it relates to US laws and reach into China.