SEC Charges Chinese with Stock Manipulation

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83. The manipulative scheme also involved wash trades (trades where there was no change in beneficial ownership), and other trading for which there was no economic rationale. The only purpose for this trading was to further the manipulation of AutoChina’s trading volume and stock price.

84. For example, on January 6, 2011, Ye Wang placed a buy order for 5,000 shares of AutoChina stock at $25.99 per share. Approximately six minutes later, Victory First (of which Ye Wang is the sole shareholder and director) placed a sell order for 3,150 shares at $25.99 per share. Both trades were placed by a computer using the same browser cookie. This trade resulted in no change of beneficial ownership.

http://sec.gov/litigation/complaints/2012/comp-pr2012-59.pdf
 
so if Ping Pong sold to Pong Ping then they go to Sing Sing?


yeah, I'm the best.

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SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,



AUTOCHINA INTERNATIONAL LIMITED,

JURY TRIAL DEMANDED

SUM TING WONG
DING BANG TU
WAI YU SO TAN


Defendants
 
i'm on #4 of summary and i think SEC shoud really f** E trade first. for opening such accounts

i like the firms names over there..Rainbow yield..Fancy think limited :p

Rainbow Yield!

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Quote from Bob111:

i'm on #4 of summary and i think SEC shoud really f** E trade first. for opening such accounts
More...

Yeah, this is just one of several very recent cases involving fraud by Chinese using online brokers.

See also: http://sec.gov/litigation/complaints/2012/comp-pr2012-54.pdf

43. In January 2012, Yang founded Prestige under the law of the British Virgin Islands.

44. On March 13, 2012 - just two weeks before Zhongpin's announcement of Zhu's proposal to take the company private - Yang opened a brokerage account in Prestige's name at Interactive Brokers.

45. Between March 15 and March 21, 2012, Yang transferred $29.8 million from an overseas account at China Construction Bank into Prestige's account at Interactive Brokers.

46. This $29.8 million amount was far in excess of the net worth that Yang disclosed on his account opening statements and is wildly out of profile considering Yang's disclosed income of $52,500

47. Prestige used the funds in its Interactive Brokers account to purchase over 3 million shares of Zhongpin stock in the two weeks before Zhongpin's announcement of Zhu' s proposal to take the company private.

48. At the close of trading on March 27,2012 - the first trading day after Zhongpin's announcement - Prestige had earned unrealized gains ofover $7.6 million on its timely purchase of Zhongpin stock.

49. The equity trades placed by Prestige represented about 41% ofthe trading volume of Zhongpin stock during the two-week period before the March 27, 2012 announcement, and about 8% of Zhongpin's total outstanding common stock.

50. Prestige's March 2012 trading in Zhongpin stock is highly suspicious given (a) the timing of Yang's opening ofa brokerage account for Prestige (just two weeks before Zhongpin's public announcement), (b) the high volume and fortunate timing of Prestige's purchases, (c) the fact that the $29 million that fueled the Prestige account is wildly out of profile given Yang's disclosed net worth and income, and (d) the evidence of coordinated trading activity with Defendant Chang (discussed in ~~ 83-86 below).
 
how it works over there;

"Then there are members of the extended Bo clan.

On Thursday it was learned that Mr. Bo’s older brother, Bo Xiyong, has for nine years served under an assumed name as executive director and deputy general manager of China Everbright Holdings, a state-owned company that controls one of China’s major banks and an array of other businesses.

Under the name Li Xueming, Bo Xiyong receives a $1.7 million annual salary and holds stock options worth nearly $25 million, according to a profile maintained by Bloomberg Businessweek."

-The New Yorks Times
 
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