Seeking Alpha

L&L Energy -34% as GeoInvesting accuses it of defrauding investors

  • L&L Energy (LLEN -34.8%) plunges after GeoInvesting says it is preparing to file a "whistleblower report" to the NASDAQ and SEC that will accuse the company of defrauding investors by booking substantial revenue from operations that have been idled.
  • GeoInvesting says LLEN's string of acquisitions and divestitures of various properties in recent years amounts to "a bait and switch shell game," where the company claimed to come into possession of assets through swap transactions that never occurred through the exchange of assets it never owned.
  • Also, the report will claim revenue of $77.6M LLEN says was generated from its Hong Xing coal washing factory actually was near zero.
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Comments (4)
  • Kevinhenson
    , contributor
    Comments (32) | Send Message
    Follow me, if I buy a stock it crashes through the floor. Just bought a bunch more LLEN on Monday. Time to find a tree and invest in a short rope....:(
    19 Sep 2013, 11:59 AM Reply Like
  • Kevinhenson
    , contributor
    Comments (32) | Send Message
    China OTC player got me to invest, with his (her) wonderful praises in 2010. Thanks for nothing.....
    19 Sep 2013, 11:59 AM Reply Like
  • nautor42
    , contributor
    Comments (190) | Send Message
    Well, Cramer always says, stay away from Chinese stocks. I thought this one was different, because it's an American company. I made some on it earlier in the year then jumped back in about a month ago when they we were getting (making it up, I guess) good press. No one said the market was for sissies.
    19 Sep 2013, 02:48 PM Reply Like
  • slum
    , contributor
    Comment (1) | Send Message
    I learned my lesson from Sino Forest. Stayed away
    19 Sep 2013, 03:17 PM Reply Like
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