Monday, April 11, 2011
This morning the SEC announced the temporary suspension of trading in the securities of RINO International Corporation (“RINO”), a Nevada corporation with headquarters and operations in the People’s Republic of China, terminating at 11:59 p.m. EDT on April 25, 2011. According to the SEC:
It appears that there is a lack of current and accurate information concerning the securities of RINO International Corporation, because the company has failed to disclose that: (i) the outside law firm and forensic accountants hired by the audit committee to investigate allegations of financial fraud at the company resigned on or about March 31, 2011, after reporting the results of their investigation to management and the board;
(ii) the chairman of the audit committee resigned on March 31, 2011; and (iii) the company’s remaining independent directors have also resigned. Further, questions have arisen regarding, among other things: (i) the size of the company’s operations and number of employees; (ii) the existence of certain material customer contracts; and (iii) the existence of two separate and materially different sets of corporate books and accounts.
RINO is one of the "Chinese issuers" that have done IPOs or reverse mergers recently to enter the U.S. markets.