Sunday, August 21, 2011
The SEC should do a secondary suspension of Longtop Financial Technology
The SEC suspended them again - a secondary suspension from the gray market.
The SEC should do the same with Longtop Financial Technology. The company can't make payroll. The independent directors have all resigned as has the auditor. There are no independent directors and no auditor.
The company raised well over $100 million in cash. The auditor could not find it.
But we still have Weizhou Lian (the man who probably knows the location of that $100 million) running around telling everyone he has something to sell.
This is - at best - a breach of regulations on fair disclosure.
The information is either true - in which case it should be made public more generally - or it is false. In both cases the stock should be suspended - preferably before trading on Monday morning.
PS. I meant it when I said I no longer have a financial interest in this.
I have no position left in the stock. I write this as a public service.
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