China Holdings Inc (CHHL)

[Risicare]

SEC is still looking for Lu

http://www.vancouversun.com/business/Revenue+agency+employee+pleads+guilty+evasion+fraud/2733922/story.html
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The U.S. Securities and Exchange Commission is looking for Vancouver promoter Julianna Lu, chief executive and financial officer of China Holdings Inc., which is one of the most ridiculous companies I have encountered.

The company, which trades on the lowly Pink Sheets, is proposing to build "China Vegas -- A New World Resort City" on a 500-hectare site in Inner Mongolia that will purportedly rival Las Vegas as a destination resort. How it is going to finance this project is not clear.

During the year ending Dec. 31, 2008 (the last time it reported) it had zero revenues, and only $33,202 in assets against $2.18 million in liabilities.

In October, the SEC filed civil fraud charges against Lu (a. k.a. Jenny Xue-Jian Lu) alleging she had improperly used draft opinion letters from her auditors. The letters were not to be used until she made corrections to the company's financial statements and the auditors had been given an opportunity to review those changes. The SEC alleges she did not make the required changes, but filed the letters anyway.

Lu responded by announcing that China Holdings would counter-sue the SEC for "$100 billions damage/ liabilities causing [sic] to us". She said she would file the lawsuit in New York, Beijing and the "Geneva International Court".

According to Canada Stockwatch, the SEC hired process servers to find Lu in Vancouver. They discovered she had lived at several addresses, usually downtown hotels or furnished suites. None of the owners of the suites were able to tell the process server where she had gone, and one was trying to find her to collect an overdue debt.

The SEC figures Lu is still in Vancouver, and is attempting to effectively serve her through advertisements in The Vancouver Sun and Province and, in case she has left the country, the International Herald Tribune.

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