Was BIDU's CFO Murdered? Is There Securities Fraud in BIDU?
Chinese internet search company, BIDU, reported that its CFO, Sean Wang, died in an "accident" at the end of December 2007.
The company has never released any additional information about the nature of the accident -- it is a mystery.
In the first week of June, BIDU released its annual report for 2007, in which there is absolutely no mention of the former CFO -- even though he was mentioned, by name, as "key personnel" in the company's 2006 report.
There was nothing, not even a footnote, in the 2007 report explaining any details about how the company is dealing with the loss of such a "key" person; nor was there any explanation about what has happened with the "insider" Class-B shares (with ten-times the voting power of the public Class-A shares) Mr. Wang was holding at the time of his death.
BIDU's shares trade as ADRs (American Depository Receipts) on the NASDAQ. Throughout 2007, the stock has traded with extremely anomalous volume on the NASDAQ. More than 20% of the reported outstanding shares have traded each day on a regular basis, for weeks on end.
There are NO stocks that trade like this. Nearly all stocks trade less than 2% of their outstanding shares. Frankly, BIDU trades as if there are actually many more shares outstanding than what the company has officially disclosed.
One can't help but look at BIDU's trading volumes and wonder if there is securities fraud occurring with the stock. Was BIDU's former CFO somehow involved with, or aware of, the fraud? Was his death last year, not an accident, but was actually murder?