Rato: Either China needs to adopt a law to protect foreign investors from major organized privity of contract securities fraud on their soil or, inevitably, without the chance to take these criminals to court of competent jurisdiction, mob "justice" will result.
Society is premised on the idea that a court system and laws are available to protect individuals. Here there may be none (unless auditors are well-financed and are shown reckless, knowing, or complicit).
In other words, somewhere along the line the white collar criminals who run these companies will hear from angered organized criminals (investors who double as racketeerers) who are disgruntled about their decline in "family" investment. Perhaps such a quid pro quo offer may resolve these organized criminal enterprises and perhaps these influences in the opposite direction also direct the frauds to begin with.
Someone asked on the CCME board, "Any chance another letter to the CEO would help?"
Well, there's only one kind of letter to this CEO [and perhaps to other similar fraudfeasing CEO's] that could possibly change their minds about defrauding investors, but such a letter would be more of a special message from a syndicate of mob bosses, not a passive "please do the right thing because we trusted you" letter from honest, law-abiding iHub retail shareholders.
(Disclaimer: Extortion is illegal and not ever advised; do not threaten the CEO or anyone related to the CEO; do not set the CEO up for arrest on unrelated charges in China such as narcotic trafficking or possession of contraband, etc.).
Additionally, the below noteworthy message by Joe referenced Block but could possibly capture some people's sentiments about Cheng Zheng-- including those who match certain geographic and "family business" stereotypes. It is tailored below to include Cheng's name instead.
"[Cheng Zheng] deserves nothing less than a firing squad if he were ever to be convicted of fraud in a Chinese court. Obviously in an American court, he'd be deserving of nothing less than 20 years behind bars. Bottom line is that he's a total P.O.S. and worthless to society. I really won't be surprised if some angry shareholder gets a hold of this guy at some point and beats him senseless with a Louisville Slugger."
Disclaimer: Obey the law. Violence is a bad idea. Violence without government sanction is not warranted. Self-help is never the answer.
American investors are left to their guile and otherwise depend on today's SEC China Stocks Czar.
The SEC needs to step up and intervene by requiring more protection and security from foreign operation securities (even though this may upset sophisticated investors that frequent the CGS board). You want your foreign security to trade here, you need to have an auditor from here, you need to agree your cash balances are verified weekly, you need to keep a percentage of the cash offshore, etc. My policy junkie days are long behind me, but I know this board has plenty to offer about how to fix the problem through a stricter more protective policy. One possibility is to look at the number of frauds over a period of time from a particular country to raise or lower other bars associated with that place. This is no different than saying some places are high crime areas or that beachfront property is loss-prone from hurricanes.
Market Data 
Markets 
