I take this from an article Game Over for CHGN dated 5/15/12 :
"Mr. Carnes was the first to publicly accuse CHNG of fraud in an anonymous report published February 12, 2010 in an online blog. An archive of the original report is available here. Mr. Carnes removed the reports from the blog after being threatened by an agent of CHNG Chairman Qinan Ji."
The interesting question, how would a caucasian American as blogster in America ever possibly know the "details" of assets on the books of CHNG and know of family relations that were not disclosed at that time? If you can figure that out, you can get closer to the end-ball in this match of deceit.
that rbt, is the problem.... he did not report that the loans that he made to family members with the funds of CHNG were loans to his personal family members. This breached the investment policy of the CHNG. That, however does not constitute fraud. But when the SEC questioned Mr Ji about the loans he reportedly (by the SEC) lied constituting fraud.