Hall of Shame
China Medical Technologies (CMEDQ US)
Finally, in March 2017, the founder and a former executive of China Medical Technologies Inc. were charged in the US with stealing more than US$400 million from investors. Xiaodong Wu was CEO and former CFO Tak Yung Samson Tsang, 46, allegedly lied about how they would spend the proceeds of note offerings from January 2005 to November 2012, saying they would be used for general corporate purposes, to buy businesses and technologies and to repurchase outstanding notes, prosecutors said. Instead the two men apparently diverted more than US$400m to entities controlled by or related to them. Wu and Tsang also allegedly forced China Medical’s independent director and outside auditor to resign, halted public disclosures of material events affecting its securities and ceased making interest payments.
Glaucus Research: China Medical Technologies, 12 Feb 2011
Bloomberg: China Medical Technologies Executives Charged in U.S. Fraud Case, 21 Mar 2017
Quartz: Around $400 million is allegedly missing from a Chinese company, 4 Dec 2012
China Medical Technologies: Annual Report Mar 2011