SinoTech Energy (CTESY US)

In August 2011, Alfred Little (no longer) issued a short sellers note on SinoTeck claiming it to be a fraud. This was subsequently reprinted on Zero Hedge. On September 22, 2011, SinoTech’s independent auditor (presumably Grant Thornton) resigned.

The SEC alleged that the Chinese oil field services company grossly overstated the value of its primary operating assets in financial statements. The company spent less than $17m buying LHD units instead of $120m it promised in the IPO registration statement, said the SEC. It also alleged that the chairman of the company, SinoTech Energy, secretly siphoned $40m from the company’s account at the Agricultural Bank of China.

[1] Zerohedge: Another Chinese Fraud? Alfred Little Believes Sinotech Energy (Nasdaq: CTE) Is Worth Between $0.00 And $0.63, 16 Aug 2011

[2] SEC: SEC Charges Chinese Company and Executives with Lying About Asset Values and Use of IPO Proceeds, 23 Apr 2012

AlfredLittle: SinoTech Energy: Enhanced Oil Recovery or Capital Extraction?

SinoTech Energy: Annual Report 2010

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