RINO says may be problems with 20%-40% of company contracts, shares halted
Nov 19, 2010 7:51:00 AM
On November 17, Frazer Frost, LLP, the independent auditors of RINO delivered a letter to the Registrant and each of its directors that said: ?In a telephone conversation on November 16, 2010, CEO Zou Dejun informed Ms. Susan Woo of our firm, in substance, that as to the six RINO customer contracts discussed in the recent report of Muddy Waters LLC, the Company did not in fact enter into two of the six purported contracts, and a third contract among the six was explainable. When Ms. Woo inquired about the Company?s other contracts, Mr. Zou said he was not sure, but there might be problems with 20 - 40% of them. Assuming that these statements were reasonably accurate, it appears that our reports would have been affected if this information had been known to us at the date of our reports, although the effect on the financial statements is currently unknown and cannot be quantified without a thorough investigation. . Zou stated that he was not sure the day before and went back to look into some things, and found that apart from the two problematic contracts, all other contracts are legitimate and can be verified."
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