Chinese gas distributor, China Natural Gas, listed in the US via a reverse takeover in 2005. The company was targetted by short-seller Alfred Little which between February and April 2010 published a series of reports purporting to demonstrate that the company's chairman was embezzling funds through undisclosed related party transactions. Around 18 months later, in September 2011, the company confirmed Alfred Little's allegations. China Natural Gas triggered our Fake Cash Flow Fraud model for most of its listed history, from FY05 until FY11. We suspect the company faked its profits in order to raise outside finance (although this is not confirmed) which was then embezzled.

Last updated December 2021

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