Replies to post #82239 on China Growth Stocks

[Drexion2004]

I believe the correct response to that is "OMG OMG, SELL ALL AMERICAN COMPANIES! WE HAVE A CULTURE OF FRAUD! Lets see what states those companies originate from so we can stop buying anything from those states!"

Hehe. Sorry could not resist ;).

-Fernando

[Rames]

SEC Suspensions - this here is relevant

The SEC said stock-touting websites, Twitter users and often anonymous individuals posting to message boards have swayed the investing decisions of the public, which often doesn't have adequate information about the securities.

Companies don't necessarily have to file periodic reports with the SEC for their shares to trade, particularly in the over-the-counter markets, where the stocks subject to Tuesday's trading halt were bought and sold. But rules require brokers, issuers and others to disseminate only accurate information about a company in connection with a securities sale or offering.

...

Last autumn, the SEC started a nationwide initiative aimed at targeting what are known as the gatekeepers in microcap fraud--brokers, lawyers, auditors, transfer agents and others that spread misleading information about companies--and bringing actions against them for multiple violations. The effort represents a shift from the SEC's previous strategy of going after microcap issuers one by one for single violations. The effort encompasses staff from all 11 regional SEC offices as well as numerous SEC divisions and offices aside from the enforcement division.

--

Some scam "solar" companies are on the suspensions list, for some reason BSRC is still allowed to trade ;)

Now SEC, let us hear what you're intending to do with those "gatekeepers in fraud" - brokers, lawyers, auditors - so we can look forward to your actions against the gatekeepers in China fraud. It is nearly impossible for a small business in Fujian or Shanxi to set up a neat securities fraud in the U.S. without a good number of willing gatekeepers.

Cheers.