Could they get the death penalty for that in china?
Like I said in previous post, downside is very limited, worth a bet that they can undo all this through the court system. Gonna take some time, but if the assets and schools are still producing this kind of profit this could be a 100 bagger!!!!!!
After wading through the numbers it appears at this time there is still about $1 per share in cash and time deposits plus whatever other assets they have.
It seems Chan pledged $243 mil of CAST' money as collateral for loans by others to others who have nothing to do with the company and all without the approval of the board of directors.
If there's a bright side to all this thievery it's that the operations of this company produced that much money to loot in just a few years. Hopefully those operations will be found to be substantially intact and in the hands of current management which eventually should make shareholders whole.
"According to the Previously Issued Financial Statements, on August 23, 2010, ChinaCast Education Holdings Ltd. (“CEH”), a Company subsidiary, acquired all of the interests in Wintown Enterprises Limited (“Wintown”), which ultimately held all of the interests in HIUBC, from its former sole owner, Mr. Wu Shixin. The Company’s auditors had previously informed management that according to its work papers, the Company had made payments in August and September 2010 from one of the Company’s bank accounts as part of the consideration for its acquisition of Wintown Enterprises Limited, the holding company at the time for HIUBC.
In connection with the ongoing investigation, the Company’s management has since obtained records for that account directly from the bank, and these records do not reflect any such payments during that time period. In a meeting with representatives of the Company, Mr. Wu has stated that although he recalled having executed documents at Prior Management’s request in the past, he was unaware of the details of the Wintown transaction and did not receive any consideration in connection with the transaction. "
He " executed documents at Prior Management’s request " but " was unaware of the details " ?