Seeking Alpha

L&L Energy Audit and Special Independent committees Chairman resigns

  • L&L Energy (LLEN) Chairman of the Audit and Special Independent committees Mohan Datwani resigns "due to recent developments with the Company." (8-K)
  • When asked to further clarify his reason Datwani wrote, "the Company has not kept me fully informed as to the degree and extent of ongoing government and regulatory investigations. Second ... the Company did not provided [sic] adequate financial support to complete the Committee's work, especially in connection with hiring independent, qualified forensic accountant [sic]."
  • L & L Energy "respectfully disagrees" with Datwani and notes that no other board members have "expressed dissatisfaction with the Company's disclosures." As to the second concern, it states that "none of the current board members agree with Mr. Datwani's opinion" and that no funding requests have been denied by the company.
  • Jingcai Yang, a former executive at Shenhua Group, will replace Datwani.
  • The turn of events comes after LLEN was halted by the Nasdaq last week with additional information requested from the company following fraud allegations by The GeoTeam.
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Comments (15)
  • Alfred Little
    , contributor
    Comments (498) | Send Message
     
    "Government" investigation?
    26 Nov 2013, 05:55 PM Reply Like
  • TaxReformABC
    , contributor
    Comments (5) | Send Message
     
    I have asked NASDAQ and the SEC the same question many times and not got an answer. Since Bernie Madoff helped build the NASDAQ..I would suggest that it depends on how big you are.

     

    I don't know the Chairman of the LLEN, but I do know that he was a well respected lawyer. He may just have left because he didn't want the heat, or he was pressured by other of his associates invested on the short side who will all burn badly if LLEN comes out clean..and their is a lot of money involved?

     

    My advice is to hold and buy. You can't get out in time. The "inside" shorts always win....and the market over reacts. If all long investor hold the "inside shorts" will try to buy off more analysts, lawyers and government officials and get caught. Then you get 1,000% on your investment.
    10 Dec 2013, 07:21 PM Reply Like
  • 19jt44
    , contributor
    Comment (1) | Send Message
     
    I've never been involved in something like this and own quite a bid of LLEN stock. Of course I'm very concerned, but hopeful LLEN will provide the needed documentation to prove their case. One question I have is, if and when the Nasdaq allows LLEN to trade again, will they pre-announce the date and time, so all stock owners have an equal and fair chance to react?
    26 Nov 2013, 08:16 PM Reply Like
  • jamesm2919
    , contributor
    Comments (10) | Send Message
     
    Historically, they have pre-announced the date it opens. yes.
    27 Nov 2013, 02:19 AM Reply Like
  • pamriallc
    , contributor
    Comments (21) | Send Message
     
    We think I that there is an opportunity here depending on the assets that are proved to be owned by the listed company.
    7 Dec 2013, 04:39 AM Reply Like
  • Hung001
    , contributor
    Comments (13) | Send Message
     
    I think llen is legit, and will provide nasdaq with the adequate information pertaining to the halt. I do fear that one the halt is lift, the stock will take a temporary dive " due to extremes shorts, and nervous long bailing"..but as thing settle down, the stock will rebound.
    26 Nov 2013, 10:02 PM Reply Like
  • SneakPeakResearch
    , contributor
    Comment (1) | Send Message
     
    Due diligence can never be overstated
    27 Nov 2013, 01:48 AM Reply Like
  • maxlogan
    , contributor
    Comments (24) | Send Message
     
    Agreed - if you do just an average amount of due diligence, you'll see how Geoinvesting made some key mistakes.
    2 Dec 2013, 07:41 AM Reply Like
  • pamriallc
    , contributor
    Comments (21) | Send Message
     
    We have been out to see management and their old CFO suite.
    7 Dec 2013, 04:48 AM Reply Like
  • Empat
    , contributor
    Comments (2) | Send Message
     
    I own some shares in LLEN and now concernd why Datwani resigns. What gov investigation is co referring to.?????? anybody can help me on this??
    27 Nov 2013, 08:32 AM Reply Like
  • pamriallc
    , contributor
    Comments (21) | Send Message
     
    Call me. +86-18221563221.
    7 Dec 2013, 04:36 AM Reply Like
  • jnps999
    , contributor
    Comment (1) | Send Message
     
    What happens if they don't provide the necessary documents? Does the company have enough asset in USA to pay the share holders back or should I consider my investment as a lost one? Last but not least, how long would it take to lift the halt? Thx
    27 Nov 2013, 08:47 AM Reply Like
  • Alfred Little
    , contributor
    Comments (498) | Send Message
     
    If LLEN had any money in the U.S. they would probably be paying their special investigator. As with other Chinese frauds, U.S. investors will get nothing. CEO Dickson Lee will go hide in Taiwan. LLEN directors will claim they did the best they could and no one will be forced to make any restitution to the victims.
    27 Nov 2013, 10:23 AM Reply Like
  • pamriallc
    , contributor
    Comments (21) | Send Message
     
    Recommend that you focus on facts. shawnm@pamria.com
    7 Dec 2013, 04:38 AM Reply Like
  • Adam Lu
    , contributor
    Comments (6) | Send Message
     
    The point is - what are the facts? I think I'm losing the money spent on the shares.
    9 Dec 2013, 11:14 AM Reply Like
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