Qiao Xing Universal Resources was an emerging resources company.
In 2010, the company paid US$88.4m for a mining asset from an undisclosed related party, Rui Lin Wu (“Wu”), the Company’s president and CEO at the time. He also transferred money into his own private bank account. Crowe Horwath resigned in early 2012. It appears that the misappropriation of assets was uncovered by its auditors. Our screen is for 2007 financial statements which shows evidence the normal signs of fraud but by 2008 and 2009, financials had deteriorated.
Xiaolin Chi: Second Amended Complaint, 21 May 2013
Qiao Xing: Annual Report 2010