Replies to post #1312 on China Sun Group Hi-Tech Co. (CSGH)

[Toxic Avenger]

Don't see anything about shorts, just fraud from Chinese companies and the inability for the US to do much about it.

[bar1080]

Nothing about shorters there. Just discussing stinkin' Chinese stocks and quoting the SEC, the PCAOB and other reputable sources.

By all means repost that everywhere. Again we see how the SEC has limited powers even against clear fraud. Savvy investors must protect themselves.

[downthehatch]

Eco-
Thanks for the post. It appears some people missed the key point of the article, that the problem for some auditors is not that they found fraud, but that they were put into an untenable position by conflicting US and Chinese laws:
The conflict is this, for those who didnt quite read the full article:
If the auditors comply with an SEC request for their work papers, they may violate Chinese state secret laws. If they refuse the SEC request, due to concerns about violating the Chinese secrecy laws, they put the company at risk of de-listing.

So some auditors may have resigned for reasons that have nothing to do with fraud.

Understand that I am not saying there is no fraud.
What I am saying is that there are other issues that might cause an auditor to refuse an SEC request, or to resign, that have nothing to do with fraud by the company they are auditing.