CCME - Cash loan theory. This is the most preposterous theory I can ever image. The story is getting really wild.
If you are the CEO of a company with a $600K revenue per year (like Chiming said), and you can barely make the ends meet since you have to spend a lot of money on expensive big 4 auditors (~$300K), an expensive CFO (100K), office space (a few 100K?), and consultants (CTR alone probably costs another $100K). How much money is left for bribing people to loan you $100m?
Assume you get the $100m. What would be the first thing you do? Put $100m on the bank to generate a fake cash flow statement with a faint hope of defrauding US (and Chinese) investors, or you would do something immediate: take the money and run. It is a much easier fraud to take the money and run.
Now lets talk about lenders. Who is stupid enough to "loan" $100m to someone who could not afford it, with the intent to help this person to commit a fraud? What could the lender get in return? Some 20% interest plus 100% guaranteed loss of principle, and a definite jail sentence? I said 100% guaranteed loss of principle since either the "CEO" would run away with the money, or Chinese authority will knock at your door to take the money away after the the fraud is exposed.
On top of that, there is a booming economy there and there are plenty of legal ways to make money. Why risk it all if you are a lender?
" I believe Chimin Sang is about to publish another article claiming that CCME is borrowing all of their reported earnings (~$100 million) and depositing just prior to the end of the quarter to fool Deloitte... "
AI
