Barron’s exposes details of SVM’s corruption of the Luoyang Police

On Saturday, Barron’s published a feature story on SVM’s corruption of the Luoyang Police, titled “The High Price of Digging Up Dirt in China.”  The article was written by Bill Alpert and Leslie P. Norton, who together won a Society of American Business Editors and Writers award for their 2010 investigation of “reverse-merger” Chinese stocks.

The article introduces Michael Wei, a Chinese research analyst who the Luoyang Police forced to sign a false confession statement implicating Kun Huang, a Canadian research analyst detained in a Chinese jail for over a year.  The Luoyang Police threatened that Michael must testify against Kun or else face a long imprisonment.

Rather than falsely testifying against Kun, Michael left China and offered his full cooperation to the RCMP as they continue to conduct a criminal investigation of the bribes paid by SVM’s management to the Luoyang Police.

The key evidence that Michael provided to the RCMP are video and audio recordings of his meetings with the Luoyang Police, in which he catches the police red-handed accepting bribes from SVM and discussing how they will “fabricate” charges against Kun.

4 responses

  1. This is something that 60 minutes should be reporting on. I admire your tenacity in bringing this story to the public’s attention.

  2. Also, if your so called friend was in jail, one would think you’d be spending your time trying to get him out, instead of slandering the company! So show some actual proof he’s in jail, a contact number, a file number, something other then just your word, something that we can follow up on.

  3. Bla bla bla as if no US public company does not “grease the wheels” or do shady things with political entities, whether SVM has or not. And its a different culture and country….ahem, so we should not invest in South America or Russia or any other Asian companies?….really? this is getting absurd the whole short anything china for minor detail is ludicrous, they represent best value in the market, and the bash accuse and short is getting pathetic and stale.

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