Chinese fertilizer company Bodisen Biotech was the product of a 2004 reverse merger in the US orchestrated by the New York Global Group (NYGG). In September 2006, an article in the New York Post questioned the relationship between Bodisen and NYGG which prompted Bodisen to announce that it had terminated its relationship. In November 2006, Bodisen received a de-listing letter from the exchange citing insufficient or inaccurate disclosure with regards to its relationship with NYGG. It was alleged that that NYGG had issued positive analyst reports paid for by Bodisen. This prompted a collapse in the company's share price. From 4Q06, Bodisen's financial performance began to deteriorate, with FY06 revenues coming in more than 30% below forecast. In 1Q07, sales collapsed 52% YoY and profits turned to losses. As a result, its share price continued to sink. The company was de-listed from the exchange in April 2007. While NYGG and its founder were indicted on various charges they were eventually dropped. The sudden collapse in Bodisen's profitability raises suspicions that it was faking profits.  

Last updated February 2022

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