Universal Travel (UTRA US )

Universal Travel Group provides travel services. The Company’s core services include booking services for air tickets, hotels, restaurants as well as tour routing for customers. In September 2010, Bronte Capital issued a blog report claiming that the company was possibly part fraud.[1]

Shortly thereafter, in April 2011, its auditors, Windes, resigned its engagement due in part to the Company’s management and/or the Audit Committee being non-responsive, unwilling or reluctant to proceed in good faith and imposing scope limitations on Windes’ audit procedures.[2] Further short sellers issued subsequent reports questioning the existence of cash.[3] It was subsequently discovered that management had tampered with the auditing process and generated fake assets, revenues and receivables.[4] The predecessor auditor, Rotenberg, was fined US$50,000.

[1] Bronte Blog: Travelling through China with the Universal Travel Group: fly from Beijing to Yichang – pick up your tickets at Shenzhen airport!, 15 Sep 2010

[2] Press release: Universal Travel Group Inc. Appoints EFP Rotenberg & Co, LLP as Independent Auditors, Subject to Clearing Client Acceptance Procedures, 14 Apr 2011

[3] Glaucus Research: Universal Travel Group, 8 Mar 2011

[4] SEC investigation: Legal Document, 1 Jul 2014

Universal Travel: Annual Report 2010

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