By Patricia Hurtado & Bob Van Voris - May 9, 2013 7:01 AM GMT+0300
The U.S. Securities and Exchange Commission sued Subaye Inc. (SBAY) for fraud, saying the Chinese video-advertising and entertainment company misled investors about its financial prospects and revenue.
The SEC, after filing its complaint yesterday in federal court in Manhattan, later said Subaye agreed to settle the matter without admitting or denying the allegations against it. The Beijing-based company also consented to a final judgment barring any further securities law violations, the agency said.
The pressure on companies like Fuqi is increasing all the time.If you read the whole article you will see that
this company actually was total fraud and didn't even have a proper office.So I don't know what it means
"agreed to settle the matter".
They siphon the money from US investors and divert to booming real estate business where US investors have no reach. In this matter, China government seal the Chinese frauds from outside world similar to north korea fashion. Charlene gave hints before quitting, but I did not care before I learnt that I am cheated. I am not mad at Chinese frauds. Because they did it as they are given the opportunity to cheat. I am mad at the pumpers in wall street who brought these frauds to enlist thru backdoor. These wall streets criminal should be hanged first. Anyhow, enough damage is done before we finally learnt that no more Chinese RTO stocks will be listed anymore in wall street. Even good Chinese stocks will be ignored for decades.
I think it is fair to be upset with both groups. It is clear that the Chinese culture produces a high percentage of leaders that are not trustworthy certainly in business and likely in government. One only has to look at the Shanghai Stock Exchange Composite Index to see that even the Chinese do not trust these companies. I agree that Chinese stocks will be shunned by western markets for a long time.