Chinese contractor China Expert Technology listed via a 2004 reverse merger on the OTC market in the US. Problems started to emerge in July 2007 when the company's CFO resigned and shortly thereafter it failed to file 2Q07 results. In September, a New York Post article revealed that the company's auditors had resigned some weeks ago and that it was largely a sham. A class action law suit was filed against the company but it had gone dark, so instead the lawyers went after the auditors which subsequently agreed to settle for US$4.2m. The company had been faking profits for its entire listed history (FY04-1Q07), hiding the evidence in receivables, contract costs, consultancy fees, cash and possibly acquisitions. It is a confirmed fraud. 

Last updated January 2022

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