China Yibai United Guarantee International Holding Inc (CBGH)

[sunspotter]

Proper due diligence on GBGH from that master of DD, nodummy:

"CBGH - some research on this company

Joseph Meuse bought a $500,000 debt Note for $60,000 on January 27, 2009 from Charles Sheffield, the CEO and principal shareholder of the Spectrasource Inc shell. Joseph Meuse was then issued 8,000,000 shares to eliminate the $500,000 debt Note. Those 8,000,000 shares gave Joseph Meuse 52% ownership and full control of the shell.

www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6539769

After taking control of the shell, Meuse sold off all the assets emptying the shell. Some of those assets Meuse sold to the same person who he bought the $500,000 debt Note from - Charles E. Sheffield.

(See attached exhibits and notes from the initial company disclosure form from July 29, 2009 for more details)

http://www.otcmarkets.com/financialReportViewer?symbol=CBGH&id=22724


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On April 23, 2009, Joseph Meuse filed a form 15 voluntarily terminating the registration of the Spectrasource Inc stock.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6555937

After emptying out the shell and terminated its registration, Meuse sold the shell to a group of Chinese investors (yet another Meuse Chinese merger).

On April 30, 2009, Meuse signed a share purchase agreement with IG Finance Investments Inc (a British Virgin Islands corporation incorporated in March of 2006) to sell his 8,000,000 control shares to IG Finance Investments for $115,000.

IG Finance Investments Inc is a company controlled by Li Li, Jiyang Han, Jun Zhang, and Nan Liu.

Gregg Jaclin of Anslow & Jaclin LLC over saw the agreement as the legal counsel.

On May 8, 2009, the name of the entity was changed with the Nevada SOS from Spectrasource Inc to China Yibai United Guarantee International Holding Inc. and raised the authorized share count from 100,000,000 to 1,000,000,000.

On June 17, 2009, China Yibai United Guarantee International Holding Inc was granted a name and symbol change (CBGH) along with a 1:15 reverse split.

Following the 1:15 reverse split, China Yibai United Guarantee International Holding Inc did a share exchange agreement with IG Finance Investements Inc. on June 27, 2009.

CBGH issued IG Finance Investments Inc 122,984,317 shares of CBGH stock in exchange for all of the shares of IG Finance Investments Inc making IG Finance Investments Inc a wholly owned subsidiary of CBGH.

The majority of those 122,984,317 shares were split up as follows:

Li Li - 89,007,650
Jiyang Han - 10,000,000
Jun Zhang - 50,000
Nan Liu - 30,000
Zhi Zheng - 11,000,000
Joseph Meuse (Belmont Partners LLC) - 8,000,000

According to the filings IG Finance Investments Inc has a wholly owned subsidiary called China Dragon International Investment Co, Limited (incorporated in Hong Kong, China in June of 2008).

Then the filings get confusing, but they claim to have 100% ownership of two other entities (VIE's - variable interest entities) through contractual relations called Dalian United Investment Consultancy Co Ltd (incorporated in Dalian, China in August of 2009) and Dalian Yibai Small and Medium Enterprises Guarantee Co Ltd. (incorporated in Dalian, China in February of 2009)

From there they claim to have 36% interest in Jilin Zhengda Guarantee Co. Ltd and 20% interest in Qinghai Zhengada Guarantee Co. Ltd.





The screwy looking diagram of all the subsidiaries and how they tie together reminds me of the 3 Joseph Meuse chinese mergers mentioned in this article samsamsamiam posted:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68989645

Personally I think that all of the CBGH subsidiary companies are probably largely insider owned.

The filings show that CBGH has been involved in some very big loan agreements with Dalian Yibai Trade Co, Ltd. and Dalian Yibai Investment and Management Co. Ltd. through one of its wholly owned companies, Dalian Yibai Small & Medium Enterprises Guarantees Co. Ltd.

These odd loan agreements (possibly arms length agreements) basically make up most of the numbers on the CBGH balance sheet.


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Joseph Meuse would end up filing a lawsuit against CBGH having something to do with the April 29, 2009 share purchase agreement he executed with IG Finance. On February 16, 2011, the court ordered that Belmont Partners, LLP receive no compensatory damages and receive norminal damages in the amount of $1.00.

The last beneficial owners list for September 30, 2010 still showed the following beneficial owners:

Li Li - 89,007,651
Zhi Zheng - 11,000,000
Jiyang Han - 10,000,000
Joseph Meuse (Belmont Partners LLC) - 8,000,000.

Jiyang Han, Jun Zhang, and Nan Liu were no longer listed as officers of the company by this point.


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CBGH's last OTC filing was on May 25, 2011 for the period ending March 31, 2011.

CBGH claimed to have issued almost 18,000,000 shares between March 31, 2010 and March 31, 2011 to a few dozen different shareholders, yet they claimed that their float only grew by just over 313,000 shares. Highly unlikely that the float wasn't actually much bigger by March 31, 2011.

As of the last report on March 31, 2011, the outstanding share count was at 150,177,829 shares. Most were still restricted at this point. June of 2011 would mark the 2 years mark since Belmont Partners LLC and non-officers Zhi Zheng and Jiyang Han got their 29,000,000 shares combined as well as the other original IG Finance shareholders, I'm sure the float is much much bigger now.

Revenues for the last quarter reported were down to only $8,643.46 which was a huge drop off from the previously reported revenue numbers making it probably pretty obvious why CBGH stopped sharing its financial numbers with its shareholders.

Starting in late May of 2011, the share price started dropping on light volume. Beginning on July 11, 2011 some heavier volume took the share price down much further.


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This now dark - No Information Pink Sheet company was used as a pump and dump by some IHUB posters. Some front loading was done on September 28, 2011 followed by the pumping starting on September 29, 2011. Those pumpers have since dumped and moved on leaving a lot of stragglers clinging to the prospects of that stock.


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People should be very careful with CBGH. I think most of the financial numbers in the past filings were cooked through arms length deals and since the last much less attractive financial filing back in March, CBGH has gone silent.

The SEC seems to be much quicker to suspend and/or revoke Chinese Reveres merger companies and since CBGH has gone completely dark with its filings and is already more than 2 months past due for its annual report (now in default with the Nevada SOS) they are starting to walk a very dangerous line."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=69576799