Richard X Roe's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/926320/comments http://seekingalpha.com/article/1306041/comments?source=feed#comment-17166041 17166041 Wed, 03 Apr 2013 11:25:37 -0400 http://seekingalpha.com/article/1314941/comments?source=feed#comment-17153811 17153811 http://1.usa.gov/10y9QGr ). So it appears the SEC does not respect Yongye's auditor and won't accept a fraudulent 10K at face value. Sorry.]]> Wed, 03 Apr 2013 07:52:09 -0400 http://1.usa.gov/10y9QGr ). So it appears the SEC does not respect Yongye's auditor and won't accept a fraudulent 10K at face value. Sorry.]]> http://seekingalpha.com/article/1306041/comments?source=feed#comment-17144881 17144881
The fact is, if your patent describes a chemical process that results in dirty table salt (toxic to plants) mixed with a cheap fertilizer, and then you let your "inventory" rot under the hot Hohhot sun releasing ammonia, and then you try to sell it for 100x its cost, nobody will buy it, no matter how much you bribed those KPMG China partners (and KPMG China is not KPMG US and is not a top-four auditor).

And, by the way, the 10K filed on April fools day is indeed quite fraudulent - it is obvious, if you read it. As a result, the stock is halted. ]]> Tue, 02 Apr 2013 23:55:01 -0400
The fact is, if your patent describes a chemical process that results in dirty table salt (toxic to plants) mixed with a cheap fertilizer, and then you let your "inventory" rot under the hot Hohhot sun releasing ammonia, and then you try to sell it for 100x its cost, nobody will buy it, no matter how much you bribed those KPMG China partners (and KPMG China is not KPMG US and is not a top-four auditor).

And, by the way, the 10K filed on April fools day is indeed quite fraudulent - it is obvious, if you read it. As a result, the stock is halted. ]]> http://seekingalpha.com/article/1314941/comments?source=feed#comment-17132011 17132011
For fun, just read the rest of the April fool's day 10K, paying particular attention to the Exhibits, specifically, the guarantee fee amount and the "fufaiting" (sic) of the large amount of export receivables (from a company that does not export anything).]]> Tue, 02 Apr 2013 17:41:27 -0400
For fun, just read the rest of the April fool's day 10K, paying particular attention to the Exhibits, specifically, the guarantee fee amount and the "fufaiting" (sic) of the large amount of export receivables (from a company that does not export anything).]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-17080511 17080511 Mon, 01 Apr 2013 14:43:17 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-17080341 17080341 http://1.usa.gov/YWNi1Y ), because they are having trouble digesting it. There is no private equity deal, it is a non-binding proposal, as explained in my article.]]> Mon, 01 Apr 2013 14:40:17 -0400 http://1.usa.gov/YWNi1Y ), because they are having trouble digesting it. There is no private equity deal, it is a non-binding proposal, as explained in my article.]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-17076321 17076321
So, in 2011, Yongye responded to my report that was written more than a year in the future (March 2013), per the 10K. Yongye not only makes a magic fertilizer but is also capable of time travel and clairvoyance!

Plus there are some other things in that 10K that make it a nice April 1 joke.]]> Mon, 01 Apr 2013 13:10:46 -0400
So, in 2011, Yongye responded to my report that was written more than a year in the future (March 2013), per the 10K. Yongye not only makes a magic fertilizer but is also capable of time travel and clairvoyance!

Plus there are some other things in that 10K that make it a nice April 1 joke.]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-17076061 17076061 Mon, 01 Apr 2013 13:06:50 -0400 http://seekingalpha.com/article/1306041/comments?source=feed#comment-16956961 16956961 Thu, 28 Mar 2013 17:58:12 -0400 http://seekingalpha.com/article/1306041/comments?source=feed#comment-16950401 16950401 Thu, 28 Mar 2013 15:54:34 -0400 http://seekingalpha.com/article/1306041/comments?source=feed#comment-16946701 16946701 Thu, 28 Mar 2013 14:43:03 -0400 http://seekingalpha.com/article/1306041/comments?source=feed#comment-16946431 16946431 Thu, 28 Mar 2013 14:40:28 -0400 http://seekingalpha.com/article/1306041/comments?source=feed#comment-16944481 16944481 http://1.usa.gov/Zrss9U Of course, Full Alliance has never bought even one share of Yongye. What I really want to know more about is the role of China Consolidated Investments Limited (CCIL) in this scam. Maybe Allan will lend a helping hand?]]> Thu, 28 Mar 2013 13:59:13 -0400 http://1.usa.gov/Zrss9U Of course, Full Alliance has never bought even one share of Yongye. What I really want to know more about is the role of China Consolidated Investments Limited (CCIL) in this scam. Maybe Allan will lend a helping hand?]]> http://seekingalpha.com/article/1306041/comments?source=feed#comment-16934611 16934611 Thu, 28 Mar 2013 11:06:39 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16933351 16933351 Thu, 28 Mar 2013 10:45:26 -0400 http://seekingalpha.com/article/1306041/comments?source=feed#comment-16931941 16931941 http://seekingalpha.co... Essentially, the "bid" was expected to help silence the critics, raise some money for the Chairman's grandiose projects, and keep MSPEA bonuses and new funds flowing.

Also, you cannot set up a reserve for bad debt if your receivables don't exist in the first place.]]> Thu, 28 Mar 2013 10:25:36 -0400 http://seekingalpha.co... Essentially, the "bid" was expected to help silence the critics, raise some money for the Chairman's grandiose projects, and keep MSPEA bonuses and new funds flowing.

Also, you cannot set up a reserve for bad debt if your receivables don't exist in the first place.]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-16931601 16931601 Thu, 28 Mar 2013 10:20:50 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16930741 16930741
I don't know about KPMG China backing down, but I know the SEC is after them, and that they were informed of Yongye's lack of production and $35-million sham transaction before the 10-K delay and the halt occurred.

Why do I need a lawyer when I have in my possession gigabytes of photos/videos documenting the on-the-ground observations?]]> Thu, 28 Mar 2013 10:08:44 -0400
I don't know about KPMG China backing down, but I know the SEC is after them, and that they were informed of Yongye's lack of production and $35-million sham transaction before the 10-K delay and the halt occurred.

Why do I need a lawyer when I have in my possession gigabytes of photos/videos documenting the on-the-ground observations?]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-16924501 16924501
Yongye's own Director and Chief Operating Officer writes that Yongye never sells on credit, and, therefore, never has any AR. Yongye's Chairman praises his writing as truthful. It is all explained here: http://seekingalpha.co...]]> Thu, 28 Mar 2013 08:13:00 -0400
Yongye's own Director and Chief Operating Officer writes that Yongye never sells on credit, and, therefore, never has any AR. Yongye's Chairman praises his writing as truthful. It is all explained here: http://seekingalpha.co...]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-16924271 16924271 Thu, 28 Mar 2013 08:04:51 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16880301 16880301 Wed, 27 Mar 2013 11:09:30 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16869811 16869811 Wed, 27 Mar 2013 08:36:39 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16858171 16858171
Regarding the drawdown, yes, it is your English: http://bit.ly/XbZnnK

What do you consider a stunt? If you read the transcript of Yongye's 2012 management summit (the link is in the article), you will see that all the major banks were the guests of honor at that summit. What, you think corruption does not exist in China?]]> Tue, 26 Mar 2013 22:57:37 -0400
Regarding the drawdown, yes, it is your English: http://bit.ly/XbZnnK

What do you consider a stunt? If you read the transcript of Yongye's 2012 management summit (the link is in the article), you will see that all the major banks were the guests of honor at that summit. What, you think corruption does not exist in China?]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-16833981 16833981 Tue, 26 Mar 2013 13:32:06 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16828841 16828841
Here is your evidence of the (partial) funding: http://1.usa.gov/YcX3MU See page 11:
--
We have been informed by Full Alliance that on December 27, 2012, Yongye International Limited (“Parent”), a Cayman Islands exempted company established in connection with the Transaction, entered into a Term Loan Facility Agreement with the China Development Bank Corporation (“CDB”), pursuant to which CDB will provide a $99 million loan facility (the “Loan”) to Parent in connection with the Transaction. THE LOAN WAS DRAWN DOWN ON DECEMBER 28, 2012 (my caps).
--]]> Tue, 26 Mar 2013 11:59:22 -0400
Here is your evidence of the (partial) funding: http://1.usa.gov/YcX3MU See page 11:
--
We have been informed by Full Alliance that on December 27, 2012, Yongye International Limited (“Parent”), a Cayman Islands exempted company established in connection with the Transaction, entered into a Term Loan Facility Agreement with the China Development Bank Corporation (“CDB”), pursuant to which CDB will provide a $99 million loan facility (the “Loan”) to Parent in connection with the Transaction. THE LOAN WAS DRAWN DOWN ON DECEMBER 28, 2012 (my caps).
--]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-16826591 16826591 Tue, 26 Mar 2013 11:23:39 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16826081 16826081 Tue, 26 Mar 2013 11:13:35 -0400 http://seekingalpha.com/article/1297791/comments?source=feed#comment-16825541 16825541
1) The "treatment" happened and Yongye's management, investor relations, auditors, the Hohhot Public Security Bureau, etc are all aware of it and to whom it happened. You can too become aware of it, if you show up announced there.

2) Yes, I am suggesting that the CIO of MSPEA knew or should have known of the fraud. The 30% return has nothing to do with it. The $35 million "coal resource" purchase went in someone's pocket. The rest of the $150 million raised from investors (including MSPEA's clients) went into some other pockets. As far as Morgan Stanley's MDs never risking their careers for one investment, you apparently did not pay attention to Morgan Stanley's compliance weaknesses. Mr. Garth Peterson, a Managing Director at Morgan Stanley Asia, is now in jail, I believe, for one investment: http://1.usa.gov/11Hgdxl
]]> Tue, 26 Mar 2013 11:04:30 -0400
1) The "treatment" happened and Yongye's management, investor relations, auditors, the Hohhot Public Security Bureau, etc are all aware of it and to whom it happened. You can too become aware of it, if you show up announced there.

2) Yes, I am suggesting that the CIO of MSPEA knew or should have known of the fraud. The 30% return has nothing to do with it. The $35 million "coal resource" purchase went in someone's pocket. The rest of the $150 million raised from investors (including MSPEA's clients) went into some other pockets. As far as Morgan Stanley's MDs never risking their careers for one investment, you apparently did not pay attention to Morgan Stanley's compliance weaknesses. Mr. Garth Peterson, a Managing Director at Morgan Stanley Asia, is now in jail, I believe, for one investment: http://1.usa.gov/11Hgdxl
]]> http://seekingalpha.com/article/1297791/comments?source=feed#comment-16822681 16822681 Tue, 26 Mar 2013 10:15:08 -0400 http://seekingalpha.com/article/786531/comments?source=feed#comment-8204741 8204741
A stretch? I don't think so. And, no, they weren't hired to do just some phone answering, and, yes, they are actively facilitating an obvious fraud. And, no, I am not just making up some random accusations.

Yes, I had a lot of respect for FTI in the past, but things have changed recently. Those smart FTI folks that you worked with - are they still with FTI? If they are, why are they allowing their company to go down the drain? And, yeah, this cannot be an isolated incident given that upper management has been aware of all this, but has done nothing.]]> Wed, 08 Aug 2012 10:15:09 -0400
A stretch? I don't think so. And, no, they weren't hired to do just some phone answering, and, yes, they are actively facilitating an obvious fraud. And, no, I am not just making up some random accusations.

Yes, I had a lot of respect for FTI in the past, but things have changed recently. Those smart FTI folks that you worked with - are they still with FTI? If they are, why are they allowing their company to go down the drain? And, yeah, this cannot be an isolated incident given that upper management has been aware of all this, but has done nothing.]]>