Hall of Shame
Yongye International (YONG US)
In May 2011, Absaroka Capital Management published a research report, which clearly stated that "Yongye International, Inc. is a fraud". The report raised 8 issues, including undisclosed related party transactions, false claims regarding products and excessive management compensation.
Trading was halted Mar 2013, with the company stating that it would have to delay the release of periodic reports. Investors speculate that was not the only reason of the halt, the true reason being evidence related to the lack of production activity in the company's facilities during peak season and an issue with the coal mine purchase mentioned in Absaroka's report.
The company went private after a consortium consisted of the management, Morgan Stanley Asia Private Equity and Full Alliance International bought out the company.
Yongye International: 2013 Annual Report, 11 Apr 2014
Absaroka Capital Management: Yongye International, Inc. (NASDAQ: YONG) - Putting the Green in Management's Pocket, 18 May 2011
Seeking Alpha: Yongye: When A Halt Is Just A Start, 25 Mar 2013