Chinese access network solutions provider Telestone Technologies (Telestone) came to market via a 2004 reverse merger. In January 2011, it was accused by a blogger called The Forensic Factor (TFF) of misleading the market. Although TFF stopped short of accusing Telestone of fraud, it thought the company to be aggressively recognising sales which were accumulating as large receivables. The report prompted Telestone's shares to decline. In September 2012, the SEC began to ask questions about the company's receivables and then in April 2013, the company said it was unable to file its FY12 annual report. Telestone was subsequently delisted. A class action lawsuit revealed that the company had been artificially inflating sales. The company is a confirmed fraud.

Last updated November 2021

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