Jiangbo Pharmaceutical was a reverse takeover which listed on the NASDAQ in June 2010. Shortly thereafter, in December 2010, and unbeknownst to investors, the SEC commenced an informal investigation. This prompted the audit committee to begin its own parallel investigation in February 2011. Following a subpoena from the SEC on 26 March, Jiangbo's CFO resigned on the 31st and the company announced a change of auditor on 4th April. On 31st May, the NASDAQ halted trading in the company's shares and requested additional information. The audit committee resigned in June 2011, citing management obstruction. This seemed to prompt the NASDAQ into issuing a delisting notice on 26 July which took effect in October. The company's last filing was in August 2011. Its listing was revoked in July 2013. Our models suggest the company has most likely faking its profits, hiding the evidence in fabricated cash balances and receivables. 

Last updated August 2021

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