Waste-water treatment company CT Environmental Group (CTEG) listed on the Hong Kong Exchange in September 2013. In November 2016, it was targeted by short-seller Glaucus Research which alleged that it was faking sales and profits. The company denied the allegations and it seemed to be back to business as usual. However, 18 months later, in April 2018, KPMG qualified CTEG's FY17 financials owing to its inability to verify HK$62m of sales. Although a small amount relative to HK$2.1bn of sales, there is no smoke without fire. KPMG was then replaced with a small auditor, RMS, on the pretext that it was good to sometimes change the auditor. In October 2018, an investigation by China's Ministry of Ecology and Environment found that CTEG was engaged in illegal activities and suspected of having faked company seals. In March 2019, CTEG announced a delay in the publication of FY18 financials upon which its shares were suspended (for good). RMS subsequently resigned as management did not seem to be making progress in dealing with any of the fraud allegations or issues raised within the audit. Thereafter followed a series of management resignations and finally, in December 2020, the publication of FY18 financials disclosing massive losses. The company delisted in September 2021. It is a confirmed fraud.

Last updated October 2021.

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