L&L Energy (LLEN) CEO Dickson Lee has resigned effective immediately, according to an SEC filing, less than three weeks after the SEC accused Lee and LLEN of making false disclosures about who was running the company.
L&L Energy (LLEN) files to delay submission of its Form 10-Q, citing "time constraints that have rendered timely filing... impracticable without undue hardship and expense to the registrant."
Trading in LLEN shares has been halted since Nov. 18 pending fulfillment of NASDAQ's request for additional information, and the chairman of its audit and special independent committees resigned a week later.
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.
L&L Energy (LLEN) is halted on Nasdaq for "additional information requested" from the company.
LLEN has been the subject of criticism from GeoInvesting, which has accused the company of booking revenues from operations it never owned; LLEN issued its latest rebuttal to the allegations just last week.