Excerpt from court document -Gao will be found guilty!
The court has found that plaintiffs have alleged with sufficient particularity that China
4 Integrated reported false revenue and income figures to the SEC, as demonstrated by the markedly
5 lower figures reported to Chinese regulators. Courts have previously concluded that significant
6 discrepancies between the numbers reported to different regulatory agencies gives rise to a strong
7 inference of scienter
China Integrated's sales revenue,
13 as reported to the SEC, was allegedly 34% higher than the revenue it reported to the SAIC." It
14 income from operations and net income were allegedly even more inflated, 18,787% and 29,510%
15 respectively."' Accepting the facts alleged in the complaint as true, the company reported to the
16 SEC that it had tens of millions of dollars in net income ($37,870,963) while reporting the SAIC
17 that it had virtually no net income ($127,900)." Even absent detailed allegations about the level
18 of detailed knowledge corporate officers and directors had regarding China Integrated's finances,
19 these discrepancies are so obvious that they give rise to a strong inference of corporate scienter.
In a nutshell Gao and his cronies are big time crooks and liars! Hard to believe that Markscheid is involved with these crooks!
Bobdunn458 you are so funny. You post comments from the plaintiffs accusations as if they are holy scriptures ! They are suing CBEH so what did you expect them to file in their complaint ? These are the exact arguments the shorts used to beat down all Chinese companies. Utter Fail on your part
What is new here? It has been known for years now about the differences between the SEC and SAIC numbers. It was common practice to not report accurate numbers to the SAIC. That inaccurate numbers were provided to the SAIC has no bearing on the truth of the nmbers reported to the SEC. I believe that there were issues with numbers reported to the SEC, but that does not mean there is no value in the company.
I understand why the company has been keeping quiet. They did do wrong, but there is still a highly valuable business remaining that they want to protect as best as possible. They do not want to give any potential ammo to the plaintiffs. If there wasn't anything there to protect, they would not be putting up such a fight with the investigation, hiring Markscheid, etc.
The business is real. The biodiesl business was not as reported, but the investigation let us know that long ago. The big questions are: How much is this case going to cost the company? Will there be any fines in China? Once this mess is over, what methods will be used to return shares closer to their actual value?