Traditional Chinese medicine company China Sky One Medical listed in the US via a 2006 reverse merger. In April 2009, short-seller Asensio published a report which questioned the credibility of the company's financials. Although this did not seem to have any impact on the company's share price, in September 2009, the SEC opened an investigation into China Sky One Medical's accounting, record-keeping and disclosure practices. Financial performance began to deteriorate in 2010 as a number of distributors ended their cooperation with the company supposedly owing to increased scrutiny from the Chinese authorities who were getting information on them from China Sky's SEC filings. In September 2012, the SEC filed a suit charging China Sky One Medical with fraud. The company was found guilty by default in 2015. China Sky is a confirmed fraud.

Last updated December 2021

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