Longhai Steel, Inc. (fka LGHS)

[sunspotter]

"ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
On October 12, 2012, Dr. Michael Grieves informed the Board of Directors of Longhai Steel Inc. (the “Company”) that he resigned as the Company’s director and the chairman of the Audit Committee, effective immediately. The resignation of Dr. Grieves is not in connection with any known disagreement with the Company on any matter. The Company intends to elect a new independent director to fill the vacancy created by the resignation as soon as possible."

Let's just say that when the head of the Audit Committee resigns just a few short weeks after the CFO leaves, it's not generally good news.

I suspect that these gentlemen have become aware of the fact that LGHS, like so many Chinese Variable Interest Entities, is a scam.