Use access key #2 to skip to page content.

goldminingXpert (29.44)

Starr files lawsuit against CCME

Recs

19

March 21, 2011 – Comments (8) | RELATED TICKERS: CCME.DL , CAGC.PK.DL

http://www.courthousenews.com/2011/03/21/Secure.pdf

If it wasn't over before, it certainly is now.  Remember, in the future when analysing possible fraud, don't take a "reputable" investor to be solid proof of a company's legitimacy. Both Carlyle at China Agritech and Starr got burned by their failure to do good due diligence. To those who were using Starr's alleged due diligence as an excuse to not do their own when the shorts launched their correct lines of attack against CCME -- cut it out. Ignoring due diligence will always get you (and other investors that listen to you) in trouble.

To all investors, even if you had no part in CCME, I urge that you study it closely. It is the anatomy of a near-perfectly constructed fraud -- if you can identify a CCME in advance, you will not fall more many frauds as CCME was better run than most.

8 Comments – Post Your Own

#1) On March 21, 2011 at 6:01 PM, JaysRage (88.79) wrote:

To all investors, even if you had no part in CCME, I urge that you study it closely. It is the anatomy of a near-perfectly constructed fraud -- if you can identify a CCME in advance, you will not fall more many frauds as CCME was better run than most.

Agreed, 100%   It is an excellent case study.  

Report this comment
#2) On March 21, 2011 at 6:13 PM, goldminingXpert (29.44) wrote:

fall for many frauds*

Thanks for the comment JaysRage.

Report this comment
#3) On March 21, 2011 at 6:31 PM, ChrisGraley (29.74) wrote:

I have to admit I didn't put forth much effort into reasearching them. I have followed your previous posts though.

It might be fun to try to pull their financials and see if U can find anything forensically. 

Report this comment
#4) On March 21, 2011 at 6:37 PM, ChrisGraley (29.74) wrote:

*** by "U", I mean I. ;)

 

Report this comment
#5) On March 21, 2011 at 6:40 PM, goldminingXpert (29.44) wrote:

Chris: While I enjoy going through financials -- it is actually fun for me -- I've been up to my eyeballs reading every 10-Q and 10-K that another company has put it out since went public.

I personally determined CCME was a likely fraud (and wrote accordingly at Seeking Alpha) entirely based on Citron's pan and the option market's overwhelming negativity -- along with the fact that the CEO's letter was not convincing in any way. It would be interesting for somebody (maybe an accounting professor) to read their filings and try to prove fraud on that alone.

Report this comment
#6) On March 21, 2011 at 6:41 PM, goldminingXpert (29.44) wrote:

Or you to read them -- haha -- you commented again while I was typing up my response.

Report this comment
#7) On March 22, 2011 at 2:13 AM, DragontoadX (81.48) wrote:

If it wasn't over before, it certainly is now.

Hmm.. well while it certainly doesn't look good, there's not really any new info in this... Given the resignations of DTT and Dorothy Dong, I don't think this really does much if any additional damage... just getting the process moving assuming that there is indeed fraud.  

Report this comment
#8) On March 23, 2011 at 3:47 PM, JakilaTheHun (99.94) wrote:

My only question is --- when will ONP go down?  I've been rather quiet about these China reverse-merger companies for various reasons, and I refuse to comment on them much, but ... let's just say I sniffed out a lot of stuff on ONP about a year ago.  Of course, so did Muddy Waters, but ONP is still around.

Report this comment

Featured Broker Partners


Advertisement