Fraud is fraud, whether it is hatched as a result of an IPO or reverse merger.
FORBES: FBI Ramping Up Interest in Fraud Related To Chinese Reverse Mergers
The fraud had nothing to do with whether it was an IPO or reverse merger.
FORBES: FBI Ramping Up Interest in Fraud Related To Chinese Reverse Mergers
The reverse merger business has been growing strong and has found an eager clientele in China.
But then there are tales of companies like CTC Cosmetics Holdings, which did a reverse merger in 1997.
This applies to private companies, companies that go public by IPOs or companies that go public by reverse merger.
FORBES: FBI Ramping Up Interest in Fraud Related To Chinese Reverse Mergers
However, it seems that a quick trip to public trading through a reverse merger does little to protect investors.
FORBES: FBI Ramping Up Interest in Fraud Related To Chinese Reverse Mergers
In a reverse takeover, also known as a reverse merger, a private company merges with a publicly traded shell.
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In a reverse merger, the private firm merges with a public shell company.
Not to worry: It now trades on the Nasdaq bulletin board, thanks to an old tactic of penny-stock operators--the reverse merger.
Many reports brazenly admit Getco did a reverse merger, like those Chinese deals that are causing so much fraud trouble.
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Before its emergence in biotech via a reverse merger, Forbes noted, the company had been a mining exploration outfit in Vancouver, B.
Noting the decline in Chinese public offerings, Sidley Austin partner Robert Pietrzak pointed to investors being scared off by reverse merger developments.
As Oberhelman spoke, a defunct video-distribution company in Hong Kong was finalizing a reverse merger that would come to haunt Caterpillar.
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When the Chinese do a reverse merger, the auditor of the Chinese firm typically becomes the auditor of the reconstituted public company.
FORBES: Getco Gets NYSE Listing Via Reverse Merger With Knight Capital
Chalk that up to the increased scrutiny about questionable bookkeeping at Chinese firms that have debuted on Wall Street, typically by reverse merger.
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The company went public as Star Scientific in 1998 in a reverse merger with Eye Technology, a moneylosing optical-lens manufacturer that was sold off in 1999.
To avoid that, Merck structured its takeover of Schering-Plough as a reverse merger, with Schering-Plough technically acquiring Merck, and then renaming the company Merck.
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First he took the company public, in a reverse merger with electronic network Archipelago Holdings, then he forged the first trans-Atlantic exchange merger, with Euronext.
The company just started trading on the Nasdaq in February, after a reverse merger late last year got them a ticker on the Toronto stock exchange.
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And the frustrating issue of blocked overseas inspections is being chipped away at, albeit too late to encourage warnings or prevent Chinese reverse merger frauds.
In 2002 the company had done a reverse merger with ProHealth Medical, an o-t-c bulletin board stock, that resulted in Langley's RHL Management getting 5.5 million shares.
In 2004, Centre partially exited its stake when Bumble Bee combined with Connor Bros. income trust through a reverse merger that saw the formers management take over the latter.
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To keep investor suspicions at bay, says the SEC, Anderson first wrote that a planned public offering had been delayed--then decided to turn Westar into a public company via a reverse merger with Terax.
Towerstream found its way into the public markets last January via a reverse merger with a wholly owned subsidiary of a shell company called University Girls Calendar--a company that produced exactly what one might guess.
Where did this company come from: its convoluted odyssey includes a Brazilian computer maker going bankrupt in the 1990s, its assets sold off to pay its lawyers and a trickle-down through a reverse merger to venture capitalist Robert S. Goldman and others.
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Lazard advised the New York Stock Exchange in its pending reverse merger with Archipelago Holdings (nyse: AX - news - people ). (Goldman Sachs, which first brought the idea to NYSE and Archipelago, is the lead bank on the Lazard IPO).
Mervyn Jacobson read about Simons' bumpy journey and was smitten with the idea of finding value in junk DNA. In 1989 they formed GeneType and applied for their first patent covering noncoding regions and HLA. In 2000 GeneType pulled off a reverse merger with a publicly traded Australian shell company that formerly mined for gold.
As they weigh their options, pressure will grow on regulators to scrap the reverse-merger structure.
These deals are usually arranged by companies in reverse-merger situations or by young public companies that want to raise cash right after an initial public offering.
Investing in Chinese assets can be difficult, but there is a certain amount of trust investors must have in order to put there money into these reverse-merger stocks.
FORBES: FBI Ramping Up Interest in Fraud Related To Chinese Reverse Mergers
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