i believe the geo allegations true and that llen did a massive financial fraud and there will be many more charges.
but if as many say, the geo allegations are false and all the revenue was real, they have no cash problem, and all the ownership agreements are valid and the only thing that happened was lee committed fraud on the original listing.
then why would they put the forensic audit on hold.
why would they not complete the audit if all the groundwork was already done and then use the audit to prove to the public that all allegations of faked financial revenue were false.
this proof would greatly stabilize the share price if they could prove it.
if it also could prove the ownership agreements, this would help the share price.
also, if the forensic audit proved these things, it could be used to counter the lawsuits coming and minimalize the amount of money they will have to pay.
it could be used as evidence to sue geo.
it could be used as evidence to present against any future allegations by the sec.
it would have only been in the best interest of the shareholders and the company and the executives that are being investigated to complete the fa and arm themselves with this evidence.
after all if the geo allegations are false and the revenue real and they have no cash problem, the cost of the fa would save them from owing massive settlements.
you would have to be totally incompetent as executives to not finish the fa and put it off if the fa would have disproved all allegations and proved their innocence and proper ownership status.
it would be idiotic to put off the fa if it proved everything real just to save money at this point when the amount for the fa would be minimal compared to all the revenue they claim they are making.
it could be only put off for two reasons, total incompetent management or and i suspect this is the reason.
the fa would have confirmed lee´s massive scam on the public.
proved geo allegations real.
and convicted themselves.
Sure.....all that may be true or partly true....but I can make it a lot simpler to understand.
If geo's reports are accurate, and I have no reason to think otherwise, all or part of LENN's China assets are actually controlled by the Chinese.
This means that the purse strings are held by the Chinese and for LLEN to receive future cash flow from Lee's investments, (and they are indeed Lee's investments) LLEN has to continue to hold up it's end of the agreements and the Chinese have to be willing to continue the profit sharing..
As has occurred many times in the recent past on numerous US/China equities, these agreements breakdown, fraud or not....whatever....and the Holding Co. runs out of money and dries up like a prune...
Unable to pay it's legal fees or defend against further accusations, it quietly disappears leaving stockholders with the empty bag of worthless securities..
As to the FA, I have never seen one disclosed to the shareholders. Without a court order. I have never seen one, because the use of a FA is not to find out the truth, it's to buy time with the markets..It's part of a damage control effort and never actually proves a companies innocence or guilt unless it is released.. and it won't be.
agree. i just think if the geo allegations were false and they had the cash they state. and they were legit. they would complete the one thing that might prove that, the forensic audit, and if the audit showed they were presenting true financials, they would want the world to see it. they would want to present it. and they killed it and offered excuses.
that is why they put off the forensic audit and gave more excuses.
now they can not prove their ownership agreements.
now they can not prove their financials.
now they have no ammo against lawsuits.
now they did not do this in the best interest of the shareholders to present the findings proving them innocent and ward off slaughter to the shareholders or help the stock come back up in price when this evidence is presented.
what a joke.
now the stock will go to the otc and will get tanked.
lawsuits will decimate them.
and they tell shareholders they are putting these things off until the future to conserve cash.
yet, their financials say they have had $8 million for the longest time.
they got hit by geo on september 19 and 7 months later cancel the forensic audit that could prove them legit.
two weeks or so, this gets massively sold off and tanked.
Another LPHI, I just feel sorry that there are 110 fools out there still believing in what this junk company is selling, which are lies. I really am having my doubts that an exchange will allow them to trade long enough for me to get a new pair of Asics. Oh well, I WAS VERY STUPID, to invest in anything CHINA related, although they say that the Li name is very honorable, and a girl in Houston who drives a Firebird and met Lee and Fong and said they were definitely legit, so I was not the only dummy, Aye hope.