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$CAST: Interesting accumulation
http://secfilings.com/searchresultswide.aspx?link=2&filingid=10410310
$CAST: Amended Statement Of Beneficial Ownership
http://secfilings.com/searchresultswide.aspx?link=2&filingid=10368954
CAST SEC Admin Proceeding for delinquent Financials and move to revoke the stock registration:
http://www.sec.gov/litigation/litreleases/2014/lr23087.htm
SEC Charges China-Based Executives With Fraud and Insider Trading
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539844443#.UkThuIzn9Yc
FOR IMMEDIATE RELEASE
2013-200
Washington D.C., Sept. 26, 2013 —
The Securities and Exchange Commission today charged the former CEO of an education services provider based in China with stealing tens of millions of dollars from investors in a U.S. public offering, and charged another executive with illegally dumping his stock in the company after he helped steal valuable company assets.
The SEC alleges that ChinaCast Education Corporation’s former CEO and chairman of the board Chan Tze Ngon illicitly transferred $41 million out of the $43.8 million raised from investors to a purported subsidiary in which he secretly held a controlling 50 percent ownership stake. From there, Chan transferred investor funds to another entity outside ChinaCast’s control. Chan also secretly pledged $30.4 million of ChinaCast’s cash deposits to secure the debts of entities unrelated to ChinaCast. None of the transactions were disclosed in the periodic and other reports signed by Chan and filed with the SEC.
The SEC further alleges that Jiang Xiangyuan, ChinaCast’s former president for operations in China, avoided more than $200,000 in losses by illegally selling approximately 50,000 ChinaCast shares after participating in the ownership transfer of one of company’s revenue-generating colleges before it was publicly disclosed by a new management team. ChinaCast had a market capitalization of more than $200 million before these alleged frauds came to light. After Chan and Jiang were terminated and their misconduct was publicly disclosed by new management, ChinaCast’s market capitalization dropped to less than $5 million.
“The massive fraud perpetrated by Chan destroyed hundreds of millions of dollars in market value, and Jiang’s brazen insider trading allowed him to profit by dumping his own shares on the market before the fraud was exposed,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.
According to the SEC’s complaint filed in federal court in Manhattan, ChinaCast entered the U.S. capital markets through a reverse merger in December 2006, and its common stock was listed on the NASDAQ from Oct. 29, 2007 to June 25, 2012. ChinaCast conducted multiple public stock offerings in the U.S., with the second one occurring in December 2009 when ChinaCast represented that the proceeds would be used for “working capital, future acquisitions, and general corporate purposes.” Chan instead directed and engaged in the transactions that moved investor funds outside ChinaCast’s corporate structure for his personal benefit. He did so without seeking or obtaining the approval of ChinaCast’s board of directors, and the transactions were not publicly disclosed until ChinaCast’s new management prompted the company to file a Form 8-K on Dec. 21, 2012, disclosing Chan’s misconduct.
The SEC alleges that ChinaCast falsely stated in multiple SEC filings signed by Chan that the company indirectly owned 98.5 percent of ChinaCast Technology (HK) Limited – the purported subsidiary to which Chan first transferred investor funds. However, ChinaCast actually held only an indirect 49.2 percent interest while Chan personally owned 50 percent. Chan also signed a number of periodic reports falsely stating that offering proceeds were under ChinaCast’s control and falsely including those funds in amounts that ChinaCast reported as cash and cash equivalents. Chan also defrauded shareholders and prospective investors by secretly pledging ChinaCast’s existing term cash deposits as collateral to secure debts incurred by various third parties that had nothing to do with ChinaCast’s business. Chan signed periodic reports falsely stating that ChinaCast’s cash and cash equivalents were completely unencumbered.
“Chan orchestrated the systematic looting of ChinaCast and hid his misconduct by repeatedly lying to investors about the company’s assets until he lost control of the board and was terminated,” said Sanjay Wadhwa, Senior Associate Director for Enforcement in the SEC’s New York office. “Officers and directors who misuse their access to the U.S. capital markets will be held accountable for their insidious behavior.”
According to the SEC’s complaint, Jiang was a member of the senior management group headed by Chan. Jiang engaged in illegal trading based on inside information by selling his shares on March 28, 2012, at $4.59 per share. After Chan’s management group lost control of the board, they transferred ownership of ChinaCast’s three profitable brick-and-mortar colleges away from ChinaCast to Jiang and the dean of one of the colleges. They were later sold to others. At least one of the colleges was transferred to Jiang and the dean three weeks before Jiang’s March 28 stock sale. Jiang was terminated on March 29, and NASDAQ suspended trading in ChinaCast on April 2 due to its failure to file an annual report for 2011. ChinaCast was later delisted. When over-the-counter trading resumed on June 25 after multiple disclosures made by new management about former management’s misconduct, the stock opened at 55 cents per share and closed at 82 cents. ChinaCast’s stock is currently trading at 10 cents per share.
Chan is charged with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 as well as violations of various corporate reporting, recordkeeping, and internal controls provisions. Jiang is charged with illegal insider trading in violations of the same antifraud provisions. The SEC seeks disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, permanent injunctions, and officer-and-director bars.
The SEC’s investigation, which is continuing, has been conducted by Dominick Barbieri and George Stepaniuk in the SEC’s New York office. The SEC’s litigation will be led by Nancy Brown. Assisting in the investigation was the SEC’s Cross Border Working Group, which has representatives from each of the agency’s major divisions and offices and focuses on U.S. companies with substantial foreign operations.
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539844443#.UkThuIzn9Yc
ha. My acct is showing CAST at $4.25 this am... my acct balance is way up. too bad it's a mirage!!
See CAST can break over the high of day it looks as tho its ready to break out just need some volume to come in
CAST volume accumulation pattern is nice I picked some up today looking for upside on this
Is CAST even operating currently? Is this thing completely shut down? Where is this Chan character and the money he allegedly embezzled?
"ChinaCast assets were transferred to an entity owned by Chan, "a brazen looting" that Deloitte failed to detect, according to the plaintiffs' complaint, which was dated Friday."
What's being done about this Chan A-hole?
If $ is recovered from Deloite it goes to investment funds not CAST!
This is a an awful gamble the CAST website isn't even up!
In the spirit of "Take what the market gives" and "swing trade for a free ride long term hold position"... I let over half my modest stake of .101 CAST shares go bye bye for .17 this am.
Seems like a good idea for now...but when if and when CAST is $1+, I'll reconsider. LOL. Still in though... long term hold. "free" ride. GL all.
How much higher for CAST?? Is this just the humble beginnings of a recovery??
Anybody have any clues, hints, guesses as to how much higher CAST is going near term...say, over the next week or two??
Anybody have any clues, hints, guesses as to how much higher CAST is going near term...say, over the next week or two??
Tax loss dumping is over, and it appears the real min. valuation is much higher, although way way lower than it was in the $4 range.
Love to see the rally. Hope for CHGY next! Go CAST. .20++++ please.
CAST - +75% w/volume coming!
Any news?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=84012431
Why are you so confident? I hope you are correct, and what is your near term price target?
Aargh. China stocks. Sometimes seems like no bottom in sight.
<00> Chart is shaping up
TA looking better ... nice buying volume starting ...
http://stockcharts.com/h-sc/ui?s=CAST&p=D&yr=0&mn=6&dy=0&id=p21708768365
Just a wag, but this one looks like it could easily have a "dead cat bounce" of 300% or so. A good rumor could do it, or a PR?!
.12 ask.
http://stockcharts.com/h-sc/ui?s=CAST&p=W&yr=3&mn=0&dy=0&id=p47305326712
HMMMM...
Fir tree partners filed a 13d form. Seems like something big is about to happen. Holding my shares.
Fir tree owns 7+ million shares of CAST.
hangin in? nah man i traded this loong ago back in june. as far as board interest.. dunno. just the type of play it is. chinese fraud
as far as my thoughts on it, potential trade only.
You hangin in hear? Why no board interest here? I'm looking for some bigger gains, I hope good news continues
Is there a way we can tell if the chinese are just dumping shares? Is this a scam?
Maybe ok entry, but is this total scam or what? I owned it when it was several dollars and now thinking about it again but some of the info looks sketchy. Is it a China scam?
Looking for entry pt now, looks like the current pps makes the risk vs reward here very enticing
IBOX fixed :) Thanks Admins...I also updated the board
look at how oversold the chart is!
http://stockcharts.com/h-sc/ui?s=cast
Once this law suit is over and the outcome is favorable to the board, this baby is going to sky rocket!
Can the MOD here fix the chart please
CAST definitely could be huge. Look at the RSI and how oversold this stock is right now.
Got in at .51 yesterday. Nice move the last couple of days. Interesting play here. Could be huge.
CAST still wayyyy oversold here. RSI is under 6!
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Established in 1999, ChinaCast Education Corporation is a leading post-secondary education and e-learning services provider in China. The Company provides post-secondary degree and diploma programs through its three fully accredited universities which offer four year and three year, bachelor's degree and diploma programs in business, finance, economics, law, IT, engineering, hospitality and tourism management, advertising, language studies, art and music:
The Company also provides e-learning services to post-secondary institutions, K-12 schools, government agencies and corporate enterprises via its nationwide satellite broadband network. These services include interactive distance learning applications, multimedia education content delivery and vocational training courses.
Mr. Feng has served on the Company's board of directors since January 2012. At the time of his appointment, Mr. Feng was a private investor and an advisor to education companies. From 2006 to 2011, he was the Executive Vice President, Strategy, Planning and Operations at Knowledge Universe. Prior to joining Knowledge Universe, Mr. Feng held several executive positions at the General Electric Company including leading the global business development efforts at GE Industrial. Mr. Feng graduated from Tsinghua University in China in 1989 with a BS in Industrial Automation and earned an MBA from UCLA in 1992.
Mr. Woodrum has served on the Company's board of directors since January 2012. At the time of his appointment, Mr. Woodrum was a private investor. From 2006 to 2009, he served as a research analyst for Jayhawk Capital Management, a private equity firm focused on investing in small- and medium-sized businesses operating in China. From 1998 to 2005, Mr. Woodrum was the Chief Financial Officer of CNET Networks, Inc., an online media company, where his responsibilities included raising capital for growth, business model development, financial reporting, annual budgeting, long-term planning, acquisitions, investor relations and tax. Mr. Woodrum received his B.B.A. in finance and accounting from the University of Iowa.
Mr. Santos has overall responsibility for all international operations including global education and technology partnerships, external communications, fund raising and M&A. He previously worked with Hughes Network Systems from 1988 to 2001, where he was Senior Director, Asia-Pacific, responsible for all sales, marketing, customer support and business development activities in the Asia-Pacific region and was a member of the Hughes deal team that lead the investment in ChinaCast's $17 million Series A venture capital financing round in October 2000. Mr. Santos holds a Bachelor of Science in Electrical Engineering and Computer Science degree from The George Washington University, in Washington, D.C.
Prior to joining ChinaCast in 2001, Mr. Li was a business director for China Orient Satellite. From 1987 to 1995, Mr. Li served in the China Liberation Army as an auditor. From 1996 to 1999, Mr. Li was the General Manager of Finance for China Venture Investment Co. Mr. Li holds a Bachelor's degree in Finance and Accounting from the Wuhan Military & Economic College and a Master's degree in Business Administration from the People's University.
Mr. Ma joined the Group in 1999 and is responsible for managing the Company's financial processes, including financial reporting, fund raising, investor relations and other related corporate finance activities of the Group. Mr. Ma previously worked for Cambridge Neural Dynamics Ltd and for Lippo Securities Limited as an associate director working on initial public offers and M&A projects. Mr. Ma holds a M.Phil (Finance) and M.A. (Engineering), both from Cambridge University (UK). He is also a Chartered Financial Analyst.
Dr. Donald Gardner, a global education industry veteran, will spearhead the overall development and operations of ChinaCast's international higher education division. This includes cultivating partnerships with international education institutions, developing student and teacher exchange programs and selecting key individuals to build out an effective international team. Prior to joining ChinaCast, Dr. Gardner taught in a number of graduate schools and universities throughout Asia and the United States, including Hong Kong Baptist University, Hong Kong Baptist Theological Seminary, Asia Graduate Theological Seminary, Malaysian Baptist Theological Seminary, Chung Yuan University, William Jewell College and Dallas Baptist University. He has also served on a number of academic committees and in various administrative roles within the aforementioned schools. Dr. Gardner holds a Bachelor of Science Degree from Dallas Baptist University, both Masters and Graduate Specialist Degrees from Southwestern Theological Seminary in Fort Worth, Texas, and his Doctorate from Midwestern Theological Seminary in Kansas City, Missouri.
Mr. Liu is responsible for the operation and management of higher education projects, regulatory license applications and the development of new business ventures. He was the General Manager of China Online's (Shenzhen Rayes Group Ltd) Telecom Division prior to joining the Group in 1999. Mr Liu was a lecturer at the Radio Physics Department at the Baoji Art and Science University and has a Master Degree in Wireless Electronics & Physics from Xi'an Electronic Science and Technology University.
Mr. Feng has served on the Company's board of directors since January 2012. At the time of his appointment, Mr. Feng was a private investor and an advisor to education companies. From 2006 to 2011, he was the Executive Vice President, Strategy, Planning and Operations at Knowledge Universe. Prior to joining Knowledge Universe, Mr. Feng held several executive positions at the General Electric Company including leading the global business development efforts at GE Industrial. Mr. Feng graduated from Tsinghua University in China in 1989 with a BS in Industrial Automation and earned an MBA from UCLA in 1992.
Mr. Markscheid, currently the Chief Executive Officer of Synergenz BioScience Ltd., has broad business experience as a banker, consultant, manager and corporate finance professional with more than 20 years experience in new business development in the US, Asia and Europe. Mr. Markscheid previously worked at GE Capital, where he led their business development activities in China and Asia. Prior to joining GE, he worked with the Boston Consulting Group and was a banker in London, Chicago, New York, Hong Kong and Beijing with Chase Manhattan Bank and First National Bank of Chicago. His career began with the US-China Business Council, working in Washington D.C. and Beijing. Mr. Markscheid earned a MBA with distinction from Columbia University (class valedictorian), a Masters in International Affairs and Economics from Johns Hopkins and a BA in East Asian Studies from Princeton University. He has lived and worked in Asia for over sixteen years including China, Singapore, Hong Kong, Taiwan and Thailand. Besides his native English, he is fluent in Chinese and conversant in Japanese and French. He also serves as board director of CNinsure, Inc., Jinko Solar Inc., China Energy Corporation, China Integrated Energy, Inc. and China Ming Yang Wind Group Co. Ltd.
Member of the Audit CommitteeMr. Sherwood co-founded ZS Fund L.P., a private equity firm, in 1985 and currently serves as its managing general partner. Mr. Sherwood joined W. R. Grace & Co. in 1975 as a vice president in the Office of Strategic Projects, a group specializing in the evaluation and divestiture of various W. R. Grace & Co.'s business units. In 1981, Mr. Sherwood joined AEA Investors, Inc., where he led a number of successful acquisitions until his departure to co-found ZS Fund L.P. Mr. Sherwood has served as a director on a number of public company boards, including Consolidated Stores Corporation (now Big Lots, Inc.), Market Facts, Inc., Kaye Group, Inc., Colorado Prime, Inc., Southern Electronics, Inc., Mazel Company; Niagara Frontier Services, Inc. (now Tops Markets) and Sun Television and Electronics, Inc. Mr. Sherwood graduated magna cum laude from The Wharton School at the University of Pennsylvania where he received the Herbert T. Steuer Memorial Award for the Most Outstanding Wharton Student. Mr. Sherwood serves as a director for a number of not-for-profit organizations, including I HAVE A DREAM, the Dana Farber Hospital Advisory Board, the Stanford University Parents Advisory Board, City Squash and the Columbia-Presbyterian Heart Research Institute.
Member of the Audit CommitteeMr. Tseung is the Founder & Managing Director of LionRock Capital, a private equity fund which provides strategic, financial, and corporate governance support for growth stage companies in Greater China. He is also a Senior Advisor to Owens Corning (NYSE: OC) and Sun Hung Kai Properties Group, where he last served as Managing Director of Sun Hung Kai Properties Direct Investments Limited. Before joining the Sun Hung Kai Properties Group in 2000, Mr.Tseung worked from 2997 to 2000 at GE Equity, the private equity arm of GE Capital, and from 1993 to 1995 at DE Shaw, a major global hedge fund. He also currently serves as an independent Board Director for Gourmet Master (Taiwan Stock Exchange: 2723) and has previously served on the Board of Directors for RCN Corporation (NASDAQ: RCNI) and Owens Corning (NYSE: OC). Mr. Tseung holds a Bachelor's degree from Princeton University and a Master's Degree from Harvard University.
Member of the Audit CommitteeMr. Woodrum has served on the Company's board of directors since January 2012. At the time of his appointment, Mr. Woodrum was a private investor. From 2006 to 2009, he served as a research analyst for Jayhawk Capital Management, a private equity firm focused on investing in small- and medium-sized businesses operating in China. From 1998 to 2005, Mr. Woodrum was the Chief Financial Officer of CNET Networks, Inc., an online media company, where his responsibilities included raising capital for growth, business model development, financial reporting, annual budgeting, long-term planning, acquisitions, investor relations and tax. Mr. Woodrum received his B.B.A. in finance and accounting from the University of Iowa.
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