Hall of Shame
ZST Digital Networks (ZSTN US)
A report by Spruce Point in Nov 2010 claimed that ZST’s revenues were, according to SAIC filings, likely closer to US$20,000 in 2008, with losses of US$130,000 in 2009. In contrast, it reported to the SEC revenues of over $50 million for 2008 and over $100 million for 2009.
A number of additional articles followed until finally its auditor, BDO, resigned on 23 March 2012, being unable to reconcile the bank balance. ZSTN had three auditors in quick succession, appointing BDO China Li Xin Da Hua in April 2010, following Kempisty in FY09 and AJ. Robbins in 2008 they had, PC. It’s noteworthy that ZSTN’s first two auditors, AJ Robbins and Kempisty, are both U.S. based accountants with no presence in China, or apparent expertise with Chinese companies noted on their websites.
 Spruce Point Capital management: ZST Digital Networks: Deceptive Business, Bad Investment, 3 Nov 2010
 Law 360: Case Study: Scott V. ZST Digital Networks, 13 Mar 2012
 Weneger, LLC: ZST Digital Networks has engaged in widespread fraud in its representation of its business to US investors, 3 Mar 2011
ZST Digital Networks: Annual Report 2009