Elaine Meinel Supkis
While looking up data and stories concerning a collapsing hedge fund, I discovered this little tid-bit about Xinhua News' parent corporation being sued by investors after the very recent IPO went on sale. It is a classic story of inexperienced people messing around and doing things the wrong way because they either don't have good lawyers working for them or they are arrogant and think they are above the law or they can hold much more power than the law allows due to conflict of interest situations. This all happened in the last two weeks. Time to rake Xinhua over the nasty old coals!
The complaint charges Xinhua and certain of its officers and directors with violations of the Securities Act of 1933. Xinhua is a diversified media company in China.The complaint alleges that on March 9, 2007, Xinhua accomplished its IPO of 23.07 million ADSs, representing 46.15 million common shares, at $13.00 per ADS (including 1.5 million shares sold by Xinhua’s Chairman and Chief Executive Officer, Fredy Bush) for net proceeds of $300 million, pursuant to the Registration Statement. Due to defendants’ positive but false statements following the IPO, by May 15, 2007, the stock was trading around $12.00 per share.
Then on May 21, 2007, Barron’s published an article on Xinhua disclosing that the Registration Statement for the IPO failed to disclose that Xinhua’s Chief Financial Officer (“CFO”) was simultaneously the Company’s CFO and an investment banker and stockbroker who ran a securities firm that had been under regulatory scrutiny in the past year.
On this news, Xinhua’s stock price collapsed from $10.79 per share on May 17, 2007 to close at $8.76 per share on May 21, 2007, on unusually high volume.
Plaintiff seeks to recover damages on behalf of all persons or entities who acquired Xinhua ADSs pursuant to the Company’s false and misleading Registration Statement issued in connection with its March 8, 2007 IPO. The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
This law firm is one of the biggest representatives in the Enron lawsuits that are being heard this summer all the way to the Supreme Court. Which is filled with pro-rip-off corporate Justices who happen to be the very same people who voted to stop counting the votes in the 2000 election and then installed Bush as King of the USA. Nonetheless, this firm continues to represent investors who feel they are being defrauded. This will probably be the only growth industry in the next 10 years as all the hedge fund hell hounds roll over and play dead and all the equity funds become unequal.
There are so many fraudsters and liars on Wall Street and all over kingdom come, I need to wear my big rubber boots I use to muck out the horse stables when discussing their affairs. In the case of this present story, I was amused that Xinhua, the mouthpiece of the Chinese communist leadership, is run by an American, Fredy Bush (is she a close relation to the other Bushes?)---at least, she is their figure head. Only she couldn't figure out which way to head and hit a brick wall which is made up of many laws and SEC regulations!
New York, NY, United States, 06/28/2007 - Recent Legal Actions filed against Xinhua Finance Media (NasdaqGM: XFML) lead CFC’s China Business Watch to suspend stock’s SAQ rating rating.
China Finance Centre, the New York based multimedia and trade exposition center expanding business ties between China and the United States, has announced that it has suspended further ratings of the performance of Xinhua Finance Media (NasdaqGM: XFML). The SAQ Ratings are set by editors of China Business Watch, the CFC publication that rates the performance of China based companies.Xinhua, a diversified media company in China, operates of five divisions: Media Production, Broadcasting, Print, Advertising, and Research. Over the last two weeks, nine law firms have announced that they have filed class action lawsuits against Xinhua Finance. The lawsuits allege that Xinhua and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, including the failure to disclose and misrepresention of material adverse facts. On May 21, 2007, Barron's published an article on Xinhua which reported that the Registration Statement for the IPO failed to disclose that Xinhua's Chief Financial Officer, Shelly Singhal, was simultaneously the company's CFO and an investment banker and stockbroker, who ran a securities firm that had been under regulatory scrutiny in the past year.
These events have led to the issuance of the following statement by CFC:
“In view of the serious nature of the legal filings against Xinhua Finance Media (NasdaqGM: XFML), China Business Watch SAQ Ratings Service has suspended the company’s SAQ Rating status until further definitive information is made available and assessed.”
Truly, one can't be all things for all people, not in the business world, anyway. Enron was like that, the top people ran everything and wore many hats and ended up either wearing a shroud or wearing an organge jumpsuit. Hedge funds are filled with people who have control of all aspects of the funds which is how they keep secrets. No need to tell and accountant or other busybodies like lawyers, what the hell one is doing!
Smart people often fall into stupid traps because of a desire to be in control while at the same time, trying to wave magic wands and make reality fit their own agenda and desires. So Xinhua will be hammered by disenchanted investors who would love to unload but hate losing profits.
Google Finance Charts for Xinhua Ltd.
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From the Wall street Journal:
On Monday, MarketBeat wrote about the abrupt resignation of two midlevel executives at proxy-advisory firm Glass Lewis, a subsidiary of Xinhua Finance Ltd. Today, another Xinhua subsidiary, Xinhua Finance Media, issued a press release in response to a shareholder lawsuit alleging misleading statements in the company’s IPO prospectus, against which Xinhua says it “intends to defend itself vigorously.” Xinhua Finance Media’s U.S. shares have fallen nearly 40% on heavy volume since last Thursday, when the controversy was just getting started.
*snip*
The Xinhua press release quotes Fredy Bush, the CEO of both Xinhua Finance Media and Xinhua Finance, as saying, “the Xinhua Finance business is robust and growing, as evidenced by the firms’ recent first quarter results and upward reforecast announcement on May 15th. The fundamentals of the businesses are strong, and I believe that the recent sell-off of shares does not reflect the performance of the businesses.”
Usually, when a CEO who is also the CFO as well as the banker and investment officer, would be resigning after causing a company's stock to be hammered so badly after a mere 4 months in the stock market arena! This is pretty bad. She should have kept it afloat for at least a year before messing up! Instead, Fredy seems to be living a very charmed life. Courtesy of the communist leadership.
Shanghai -- Xinhua Finance Ltd. is a financial-information company started by a no-nonsense American woman who pledged to make China's securities markets disclose more to investors. Now it's sending mixed signals about its own operations.Fredy Bush, the 48-year-old, Utah-raised chief executive of Xinhua Finance -- whose Chinese moniker means "New China" -- is watching her Hong Kong-based company's stock price get pummeled as questions mount about her firm's corporate governance.
Like so many similar financier/executive officers in the past, she is rather young, I would say from my perch here of rather older age. I can remember similar wizards and wondermakers in the past who came up with neat ideas for making money but who ended up in serious trouble.
Fredy Bush
CEO, Xinhua Financial NetworkFredy Bush is CEO of Xinhua Financial Network responsible for establishing and refining Xinhua Financial strategic vision and developing and managing Xinhua's various business units and product lines. She brings with her over 16 years of experience in Asia and consistent entrepreneurial success. Possessing a unique knowledge of the international financial markets combined with in-depth understanding of relationships and business practices in Greater China, Bush has been instrumental in bringing in strategic partners and strategic investors for Xinhua. Prior to establishing Xinhua Finance, she worked closely with key government agencies in Taiwan from 1985-1990 to establish Taiwan's first official futures market and in 1987 founded a strong consulting business in the U.S. to build business alliances, particularly in Asia and the financial sector.
Evidently, she started off quite young and rather well connected--I'm rather suspicious of her name at this point due to the fact that the Chinese have showered money, attention and goodies on that grasping, weasel of a clan. The Bushes are all about exploiting their political connections. I couldn't find her geneology but it looks like a classic Bush family values business opportunity.
She was visiting the right wing-lunatic criminal organization set up by Milken, an infamous financier who went to prison in the past.
A “willingness and desire to become part of the global economy” by businesses and the government was raised by Fredy Bush. Ongoing initiatives to increase transparency and corporate governance have been reflected by Chinese companies’ management’s willingness to work with Xinhua Financial Network’s rating service. The panelists observed an overall trend to adopting international standards. The government used to be the greatest risk to business, but was now not considered a major risk factor to conducting business in China.
So, a mysterious young lady who rose rapidly in influence and power, working with the Chinese communists who pick their allies carefully, um, heh. Xinhua will rate Chinese companies and be open and forthcoming with information while not being this way with American investors. Right! Got it.
I also wanted to review Milken's sorry life. He is now totally rehabilitated and his institute works hard to continue to undermine our economy and destroy our future and ruin our credit rating and dump us into bankrutpcy. Why anyone graces this disgraceful man's institute is...well, perhaps they are truly all birds of a feather!
By JOHN GREENWALD
Dec 3, 1990The sobs that shook Michael Milken in Manhattan federal court last week punctuated the most dizzying fall from power in modern Wall Street history. They came as federal Judge Kimba Wood sentenced the financial wizard, whose junk bonds fueled the epic 1980s takeover wars, to 10 years in prison. Said the tearful felon: "What I did violated not just the law but all of my principles and values, and I will regret it for the rest of my life. I am truly sorry."
The sentence was by far the stiffest jail term in a five-year federal crackdown on securities fraud that has so far netted a dozen major convictions. The big fish included Wall Street speculator Ivan Boesky, who was fined $100 million for insider trading in 1986 and sentenced to three years in prison (he served two). As a condition of his plea bargain, Boesky helped prosecutors pursue Milken.
*snip*
But chief defense lawyer Arthur Liman may have blundered in his insistence that Milken's crimes were merely technical ones, even after the financier pleaded guilty last April to six of 98 counts of securities violations and agreed to pay a record $600 million in fines and restitution. The defense tactic helped precipitate an unusual two-week presentencing hearing that showed Milken's operations at the now defunct Wall Street firm Drexel Burnham Lambert to have been riddled with unlawful activities. Significantly, the new testimony did nothing to refute the government's claim that Milken had encouraged Drexel employees under him to destroy or remove incriminating documents. Moreover, Liman's strategy precluded Wood from crediting Milken for any real remorse. Said Wood: "Your crimes show a pattern of skirting the law, stepping just over to the wrong side of the law in an apparent effort to get some of the benefits from violating the law without running a substantial risk of being caught."
Bush, Jr, when his own company that drilled for oil was going belly up, did insider trading. Only daddy stopped the SEC investigatioin. This old news story is a reminder of the much smaller funds we were seeing in the unfolding banking collapse scandals during Bush Sr's lousy Presidency. Neil Bush was working with these rip-off artists and was caught in the collapse of the Silverado Bank bankruptcy. He, too, got off scot free and is now conspiring with the Saudis to collect bribery money under the guise of selling angry Arabs his computerized learning programs.
So, is everyone running away from Fredy Bush? Or is she rolling onwards as relentlessly as the other Bushes? And is she very connected or is she doing the impossible? For instead of retiring in disgrace after messing up the Xinhua organization, she instead, collects more power and more money!
BEIJING, July 5 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance Media , China's leading diversified financial and entertainment media company, announced that its Advertising Group has signed an exclusive partnership contract with House.china.cn, the real estate portal under China.com.cn, one of China's leading portal sites.China.com.cn provides a full range of information in Chinese, with versions in 10 other languages including English, French, Deutsch, Japanese, Korean, Spanish and Russian. Carrying timely real estate market information, its real estate portal, House.china.cn, attracts over 30,000 page views daily.
Under the 5-year partnership contract, XFMedia will have the exclusive rights to sell advertising on House.china.cn and organize marketing events for advertisers across China. XFMedia will also provide House.china.cn with content consultation services such as the latest financial news and insightful market research studies.
"I am delighted that we have been chosen by China.com.cn because of our proven capability in real estate advertising," Xinhua Finance Media CEO Ms Fredy Bush said. "The partnership represents a successful integration of XFMedia's production, advertising and events management capabilities."
OK. She has to be a member of the Bush Family Evil Empire. Normal people get canned for what she did but instead, the government of China gives her even more goodies. Since they are buying influence, this doesn't shock me at all. They know how to butter their bread.
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ahhhh, polish up those golden chariots, and press the silk were off to the gladiator championships! Weeeeeeeeeeeeeeeeeeeeee
Posted by: TL | July 06, 2007 at 10:45 AM
Don't forget to bring some Christians to feed the poor lions.
Posted by: Elaine Meinel Supkis | July 06, 2007 at 04:38 PM
Loretta Fredy Bush is "now 48 (and no kin to George W. Bush)" according to Forbes.com
Posted by: Frederick N. Chase | July 07, 2007 at 06:51 PM
And Xinhua news is no longer. The paper which amused me for the last 2 years is gone and replaced with China news and it is worthless now for me to get my beloved diplomatic photos and other goodies which I use to track the political emperors and their staff!
Gads. This stinks big time. I used to read Pravda for the same reason years ago!
Posted by: Elaine Meinel Supkis | July 08, 2007 at 12:42 AM
Like the Wall Street Journal and other supposed esteemed rags, you have managed to propogate and or/re-propogate inaccuracies about Xinhua Finance and Fredy Bush by copying and pasteing only what seems relevant to you. You've done this with total disregard for the idea that in order to develop an enlightened opinion you might consider investigating all the relevant information first. For instance, just because someone's last name is Bush does not, notice the NOT here, mean they are of the same family as George Bush. Now-- Does that make any sense to you, Elaine, or am I getting ahead of you on this?
It's also obvious that you have little or no real knowledge of your subject, of China, of finance, of hisory or much of anything else that I can tell. Plain out you're just a Ranter and a Raver.
And, sadly, as you sit at your little Mac and pound away complaining about both communists and capitalists, you probably haven't even found a way to make a decent living out of second rate muck-raking and verbally pointing what seems to me to be a very self righteous finger at just about everybody and everything.
Is there anything you do like? Or support? And I'm not talking about clothing yourself in the American flag and posing with a dog and a cat, because that just don't mean diddlysquat.. It's real quanit in a mid-western sort of way, but not relevant and not even convincing or up to date, Elaine.
So, my advice is to get a grip... at least do your homework before you attempt to assassinate someone's character, ethics and history. If you had half as much talent as you think you have you'd be working for a more prestigious organization intead of paying for web space to grouse about things that you obviously don't have any knowldeg of.
Mal Bumgarner
Posted by: Mal Bumgarner | July 12, 2007 at 01:29 PM
DEM.
Posted by: t | September 09, 2007 at 05:00 PM
Fredy Bush isn't related to the Bushes in any way shape or form. Would that mean alot of your other assumptions are false too.
Posted by: Karleen | July 28, 2008 at 09:48 PM
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