Longhai Steel, Inc. (fka LGHS)

[sunspotter]

"one of the promoters of the company formerly of Belmont partners sold a block of Longhai stock to Michael Shumak the former Transnational Securities & Trust SA boiler room operator now in charge of Marketing at the currently suspended firm Guardian Securities in Malta for pennies on the dollar and did some unauthorized trades with unsuspecting investors at $4 per share."

Interesting. LGHS has certainly been associated with some dubious characters:

""The leading shell provider in the U.S. !" bragged Belmont in a classified ad on a Chinese Website. "Cut out the middle man, low price guaranteed!" China reverse mergers assembled by Belmont Partners include Qingdao Footwear (QING), Buddha Steel (AGVO) and Longhai Steel (ACTN). Meuse played multiple roles in these transactions—so many, in fact, that the SEC finance division asked Longhai Steel to revise its May 2010 proxy statement to explain potential conflicts between Meuse's role as an investor in the Chinese steel-wire business and his role as chief executive of the U.S. shell company with which Longhai negotiated a merger. Meuse, who says he recently has switched the focus of Belmont Partners, recused himself from the merger vote.

Belmont Partners' point man in Shanghai starting in 2006 was William H. Luckman. As director of business development, Bill Luckman helped put together more than 40 reverse mergers. His resume before Belmont, however, might leave some investors uneasy.
The Bottom Line
As Barron's pointed out, Chinese reverse-merger stocks have proven poor performers. We'd still steer clear of this group, which has missed both Chinese and U.S. market rallies.
A decade ago, SEC filings show that Luckman was the sole officer and director in stock offerings promoted by Stephen Durland and Donald F. Mintmire. In September, Durland agreed to a permanent bar from serving at a public company, in settlement of SEC allegations that he secretly sold millions of dollars of stock through nominees at Pegasus Wireless (Barron's, "Slow Hand, Fast Hand," Sept. 4, 2006). In 2005, Mintmire was convicted on federal charges of conspiracy and obstruction of an investigation into what prosecutors called "box jobs"—stock promotions where Mintmire secretly controlled the shares of U.S. companies like Amenity Zone, which falsely listed as shareholders people his son had recruited in a bar. Luckman was not charged with any wrongdoing and could not be reached in China by Barron's. Meuse says he terminated Luckman in mid-2010.

Helping Meuse finance and arrange the shell-company transactions for Qingdao, Buddha and Longhai and many others was a Syracuse, N.Y.-based car dealer named Joseph C. Passalaqua. One of their deals was for a Passalaqua company that operates ATM machines in Syracuse strip clubs. Neither Qindao nor Buddha shares have traded lately. From an early 2010 high of $30 (split-adjusted), Longhai shares now go for $15 and the company is trying to raise $15 million in a units offering underwritten by Ladenburg Thalmann & Co.

Calling Barron's from Tibet, Meuse said he moved to China in March 2010 and retired from supplying reverse-merger shells to concentrate on private-equity investing. "I wanted to get out of the situation where you can't really control what you've got," he said of his reverse-merger deals."
http://online.barrons.com/article/SB50001424052970203822504576048012938012584.html