Corporate Espionage and Intellectual Property Theft – The Economist

                                                                        23 Feb 2013

SThe Economist magazine elaborates on tales of corporate espionage, cyber-theft and intellectual property losses. (Published by The Economist)

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Accounting Risk Clouds Big U.S. Business Bets in China

By Dena Aubin & Lawrence White       10 Feb 2013

Tales of shady business practices abound in China - fake revenues, phony invoices, sham factories - but until recently, the problem seemed confined mostly to Chinese companies. No longer. (Published by Thomson Reuters International Business Times)

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Laying down the Law - Toeing the Line between Corruption & and Compliance

By China Economic Review       July 2012

Shanghai (CER) - As the UK strengthens its anti-bribery laws and the US steps up its enforcement of the Foreign Corrupt Practices Act (FCPA), companies doing business with China are finding themselves in their governments' crosshairs. Many are now concerned that succeeding in China's business world requires them to risk possible prosecution back home.

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Investing in China grows murkier with info clampdown

By Kevin Voigt and Lara Farrar, CNN       June 2012

Hong Kong (CNN) -- Beijing has clamped down on once publicly available information about operating entities of publicly-listed and state-owned companies, hurting the effort of Western investors and companies to gauge whether to invest in -- or short-sell -- Chinese firms.

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China Accounting Scandals May Hurt Overseas IPOs

By Bill Savadove, AFP       31 August 2011

Sino-Forest Corp., the latest foreign-listed Chinese company that is accused of dodgy accounting, has hurt the reputation of the country's firms and made it harder for them to list overseas, analysts say.

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The Price of Fraud

By Trudy Wang, Caijing Magazine     6 June 2011

In this cover story, Caijing Magazine’s Shanghai Correspondent Trudy Wang explores the growing catalogue of securities frauds and reverse merger scandals that are hitting Chinese companies which are publicly listed on foreign exchanges, such as Nasdaq, Amex and NYSE. This exclusive special report is the first comprehensive treatment of this topic published in the mainland Chinese press in the Chinese language.

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Longtop Financial’s Downfall Suggests Stock Fraud is Widespread

By China Economic Review       June 2011

The chaos that hit Longtop Financial Technologies bears a superficial similarity to other cases of Chinese reverse merger fraud: halted trading, short-seller pressure and the resignation of the firm's auditor. But here the similarity ends. This financial software firm is no small-cap stock. Longtop had a market cap of over US$1 billion on the New York Stock Exchange when trading in its shares was suspended on May 18.

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Land of the Lost – the World of Reverse Merger Fraud

By China Economic Review       June 2011

Most of the small-cap Chinese entities on over-the-counter bulletin boards are wasting time and money. The China Economic Review explores the growing wave of Chinese companies listed abroad getting mired in reverse merger frauds.

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Short-Seller Cuts Through China Red Tape

By Scott Eden           21 December 2010

Scott Eden Reports on how a short-seller lifts the veil on fraudulent Chinese companies listed on US exchanges whose dishonest executives submit misleading statements to US regulators without fear of punishment on either side of the Pacific. Individual investors are at risk and usually unaware of the special dangers they face with these stocks.
(Published in The Street, 21 Dec 2010)

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Wake Up Call for China Operations – Avoid Corruption and Prosper

By Robert Tie, Fraud Magazine    1 September 2010

A growing international consensus holds that corruption harms all companies – domestic and foreign. With insights contributed by ChinaWhys, this article from Fraud Magazine explains how to protect China business operations from both victimization and prosecution in the face of crackdowns on corrupt practices. Either click on the Fraud Magazine link or click on our link to read the article.

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Inside The Factory – Knockoff

By Nicholas Schmidle, New York Times Magazine    21 August 2010

In southern China, making fake tennis shoes has become a very big business. Chinese authorities are slow to enforce the law, and it’s becoming harder and harder to tell which shoes are real. With insights from ChinaWhys, Nicholas Schmidle investigates the world’s biggest counterfeit headache that won’t go away.

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Curdled Expectations

By Neil A. Martin           17 Dec 2007

More than 100 Chinese companies have gained instant stock-market listings in the US since 2000 via so-called reverse mergers. While the motivation behind such transactions may be as legitimate as a desire to save time and money, critics note that lax regulation has often gone hand in hand with price manipulation and other deceits.

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Helping Companies Protect Themselves against Fraudsters

Published by Kina Affarer           May 2007

Peter Humphrey, founder and managing director of ChinaWhys helps multinational companies in China protect themselves against fraud committed by employees and partners. "We have two kinds of clients. The smart ones contract us before they make an investment and ask us to check the target companies and their owners before they contact them. The others contact us after they are already in trouble," he says.

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Not Exactly Counterfeit

By Roger Parloff           2006-05-01

Most big brands don't want to talk about it but there's a bug in the outsourced economy: foreign contractors make more products than they're supposed to, then sell the excess out the back door. It can be hard to shut down the third shift, especially in China. It's extremely hard to police global supply chains, and IP is leaking out through 1,000 cracks.

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Corruption Pays - Keeping Corporate Investigators Busy

By Business China - EIU           2006-01-30

Conventional wisdom says doing business in China can often be a risky affair. But just how risky is it? If the rapid growth in the business of corporate investigation is any indication, the answer seems to be: riskier than ever.

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Keeping Clean in China

By K. C. Swanson           2006-01-27

Companies expanding into China have learned to expect a wide range of problems symptomatic of the vast social and economic changes under way in the country. The hurdles range from immature legal and regulatory systems to widespread theft of intellectual property. On any such list are the instances of corruption, ranging from the petty to the truly appalling, that often occur in business there. In recent years, corruption has crept up the list of worries. An emphasis on better corporate governance in the U.S. and Europe has made it more urgent than ever for multinationals operating in China to keep clean.

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Commercial Detective

By Li Xiaowei           2005-07-21

An anti-counterfeit raid in a wholesale market uncovered leads indicating that a well-known global consumer brand's own staff were involved in trafficking fake goods. When the company realized that insiders were involved, it contacted Peter Humphrey for advice on the situation.

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China's give-and-take traditions strained by US anti-graft efforts

By Mark O'Neill          2005-04-18

One major problem China faces in its march towards capitalism is rampant corruption. It has had limited success in fighting the disease but has been getting help from an unusual source - the United States' Foreign Corrupt Practices Act (FCPA).

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Mitigating the risk

from Asian Counsel         2005-03-29

Top management, corporate counsel, CFOs, internal audit, HR and security executives must act in concert and understand the risks of not checking the background of new hires, vendors, distributors and business partners. This basic failure in due diligence and corporate governance can cause and has led to massive losses for many multinationals in China, said Peter Humphrey in a keynote speech to the In-House Congress in Singapore on Mitigating the Risk of China business operations.

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Knowing the Risks

By Joe Havely          2004-05

Staff, information and property are the most valuable assets of any company, but for foreign businesses drawn to China, identifying and minimizing risk to those assets in a fast changing business environment can be a complex issue.

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Lucent case shines spotlight on murky business landscape

By Godwin Chellam          2004-04-07

SHANGHAI, April 7 (Reuters) - The ouster of four Lucent executives in China for suspected bribery shines a spotlight on the murky business landscape of the world's sixth-largest economy, but analysts do not foresee widespread fallout.

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Deal hint as Chau gets only three years in jail

Wu Zhong and agencies          2004-06-03

One of China's most successful rags-to-riches businessmen Chau Ching-ngai, once ranked among the mainland's 100 richest people by the United States' Forbes magazine, has been sentenced to a surprisingly light three years' jail for fraud.

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Shanghai tycoon Zhou jailed for three years

By Ben Blanchard and Godwin Chellam          2004-06-01

SHANGHAI, June 1 (Reuters) - A once high-flying Shanghai property tycoon was jailed for three years on Tuesday for stock market fraud and falsifying documents, Xinhua news agency said, in a case that trained the spotlight on official corruption.

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China arrests former Bank of China HK chief

By Scott Hillis          2004-02-21

BEIJING, Feb 20 (Reuters) - Liu Jinbao, the former chief of the Bank of China's Hong Kong branch, has been arrested, the latest senior financial official to be toppled over corruption.

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Citigroup woes reflect risks of China operations

Dow Jones Newswires          2004-07-05

Citigroup Inc.'s recent suspension of two senior China bankers might prompt foreign firms to rethink their traditional reliance on well-connected power brokers for a fast-track to market share.

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