July 8, 2020
Hi,
Please take a minute and look at this petition signed by 422 people and viewed by 1,835 people within 1.5 days.
Link: https://www.change.org/SECBringGSXTecheduChairmanInForQuestioning
We all want the SEC to ACT and Stop the FRAUD with these emerging market companies trading on our exchanges. There is 15-20 reports of fraud and a video of an x manager literally telling everyone that, GSX Techedu symbol GSX, has been committing fraud since 2015. The video is attached to the petition but here it is again.
https://www.youtube.com/watch?v=-7y3X1uhYAE
This stock has gone from the teens to $83+ in just a couple of weeks. How? Well they heard of all the short reports/Fraud reports and it appears that the Chairman and Directors manipulated the stock to cause a short squeeze. I have proof of a broker promoting this. GSX Director serves on Fintech Board which runs funds that promote GSX. First of all there is a big conflict of interest here, insider trading, and more going on. How did they promote the short squeeze?
Now FBI 101 money laundering occurs via loans.Well if you look at GSX financials they noted they gave loans to some Directors. If this isn't a red flag i'm not sure what is. They cycled this money through brokers right after the first short report and formed short squeezes in increments. Then after this last round they will take the proceeds and pay the loans back. How can we get concrete proof? Well if the US is allowed to come in an do a forensic audit this will come right up along with the other fraudulent activity going on. Such as identity theft ect. There is proof of this going on within Grizzly's report.
I can go on but the bottom line is we the people need the SEC to actually respond to US citizens needs and address our concerns before its to late. For exmple GSX changed their wat of stealing identies, bank accounts, ect after the reports coming out started getting deeper. So no instead of WeChat accounts they now have an inside operation with cell phones. How can we address this with a forensic audit.
Speaking of audits. Deloitte - China's partner whos over seeing GSX auditory reports was also involved with other companies that have been delisted already. The SEC should have the ability to check on Foreign Auditors and make sure they are following GAAP from the US not whatever they think is accepted.
Finally, any company backed by the Chinese Government should automatically be delisted. That's an unfair game to be played with US investors. GSX supposedly has the backing on their Government. How and why are they still listed.
Myself and 422 people that signed this petition request that GSX be halted and a US Internal Controls Audit or Forensic Audit be completed on any Chinese company trading on our exchanges. They need to follow the same rules as we have in the US.