Want to be Part of Asia’s 1% Without Deserving to Be?
Fraud School - Enroll Now!
Learn
How to:
Maintain
Two Sets of Financial Books!
Manipulate
Accounting Guidelines!
Forge
Tax Receipts!
Our
Comprehensive Services Include:
Furnishing
Lists of Bogus Suppliers and Customers to Impress Would-be Investors
Renting
Out Inventory, Labor and Trucks to Make Your Fake Business Seem Oh-so-Real
Providing
Snappy Answers (e.g. “We OEM!”) to Tough Investor Questions such as “How Do You
Generate Such Impressive Revenue from Such Small Plant Capacity?”
Call Now for a Free
Consultation – 1-800-RIP-OFFS
Chinese
Nationals Only, Please
The attached investigative report, though dense and dry,
sheds light on consultancy businesses in China and Hong Kong that advise
unscrupulous business owners on how to systematically defraud international
investors. Such Fraud School operators include investment firms such as Chief
Capital in Hong Kong.
The fever that raged among North American investors for
most of the past decade to invest into Chinese businesses has cooled significantly
in the past year as investors in publicly listed companies (e.g. Toronto-listed
Sino-Forest and NASDAQ-listed ChinaCast Education, Fushi Copperweld, and Lihua International)
have fallen victim to scams and a wide assortment of unethical business
practices. International-listed Chinese companies are supposed to represent the
crème-de-la-crème class of mainland businesses, since they purportedly need to
pass muster with a battery of international accountants, lawyers and investment
bankers and meet stringent international listing requirements. Sadly, too many
such businesses are not so sweet and creamy after all, and the nice white foam
simply hides murky, muddy currents beneath it. And, if the “best” class of
Chinese companies is this spotty, what does it say about the rest of Chinese
businesses?
Tim Clissold’s riveting book Mr. China about doing business in China in the 1980s chronicles
some jaw-dropping cases of horrifying business practices. Clearly, not enough
has changed in thirty years. The rule of law is still applied unevenly, if at
all. And too many Chinese business operators see each transaction as a
merciless zero-sum game, rather than an opportunity to build long-lasting
commercial relationships.
Given China’s economic importance, international
investors will continue to beat the well-trodden path to the country’s
doorstep, seeking riches. They are well-advised to come provisioned with a
large helping of caveat emptor and a
well-versed education in anti-fraud practices.
Fraud School
