Mullets

The no longer Very Special Committee (CAGC)

Less than a month ago, our good friends at China Agritech (CAGC) issued an important-sounding, but ultimately meaningless press release (debunked here) with quotes from G. Michael Bennett about all the important work the Very Special Committee was doing.

After the close of trading yesterday, the 25th of April, CAGC issued another press release, announcing that the esteemed Gene Michael was no longer on both the Very Special Committee nor the Audit Committee. Fear not GMB fans, as he does remain on the Board of Directors of CAGC, and still has his other gigs at SHZ, CPHI, etc.

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Weekend Update – GMB Edition (SHZ, CAGC, CAEI, CPHI, KUN, etc)

On March 10th, in response to a bearish report (read it here) on China Shen Zhou Mining (SHZ) (one of Gene Michael‘s stable of companies) put out a silly “Letter to Shareholders” available here. Just a few days later, SHZ‘s CFO suddenly resigned.

One of the more interesting parts of the letter was the attempt to downplay Gene Michael Bennett’s resume-padding. While Gene Michael‘s false claim of law degree was found in China Fire and Security Group (CFSG)’s public filings, the braintrust that is SHZ management tried to play it off as a simple typo in a press release:

“Fact: Mr. Gene Michael Bennett did not graduate from the University of Michigan. Mr. Bennett never said he did. There was a mistake in a press release by China Fire and Security, which was resolved.”

That assertion is simply laughable. Kevin Theiss, whom do you think you are fooling with such nonsense? Not only was GMB‘s fake law degree included in SEC filings by CFSG, but his claims to hold a JD also show up on the website for one of GMB‘s other penny lovelies, Providential Holdings (PHIE), where he is listed as:

Gene Bennett, CPA, JD, Business Development Officer – Asia

Check that site out, and take a screenshot for posterity. On the 23rd of March, Absaroka issued a follow-up report on SHZ, which was found here. Enjoy.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

The Auditor Shuffle – (CAGC)

On March 13th, China Agritech (CAGC) stunned the world with the announcement of their Very Special Committee. On March 14th CAGC issued another press release loaded with awesome.

BEIJING, March 14, 2011 /PRNewswire-Asia-FirstCall/ — China Agritech, Inc. (Nasdaq : CAGC) (“China Agritech”, or the “Company”), a leading organic compound fertilizer manufacturer and distributor in China, today announced that the Board of Directors, based on the suggestion of the Company’s Audit Committee, has dismissed Ernst & Young Hua Ming as the Company’s independent auditor starting from March 14, 2011.

Your author, for one, cannot wait to find out which fine firm the Audit Committee and its head, GMB, choose to replace E&Y HM. Frazer Frost? Kabani? J. Crane & Co.? A modest proposal for CAGC. Keep E&Y, lose Gene Michael Bennett and Gareth?

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

Fox::Henhouse (CAGC)

In what was an actual surprise, the NASDAQ halted China Agritech (CAGC) this morning. From their press release:

NEW YORK, March 14, 2011 (GLOBE NEWSWIRE) — The NASDAQ Stock Market® (Nasdaq:NDAQ) announced that trading was halted today in China Agritech, Inc. (Nasdaq:CAGC) at 07:34:32 a.m. Eastern Time for “additional information requested” from the company at a last price of $6.88. Trading will remain halted until China Agritech, Inc. has fully satisfied NASDAQ’s request for additional information.

The halt was precipitated by CAGC’s own press release, issued at the bizarre time of 12:20am Sunday morning ET. They will not be able to file their 10-K on time, and have no clue when they might be able to get it done. But don’t despair, because a VERY special committee of Directors has been formed:

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Oh Gene Michael, how could you? (CAGC, SHZ, LLEN, GPHG, CPHI)

Thank you to commenter, Mr. Bennett Benevolent Society, for providing a link to a report on China Shen Zhou Mining (SHZ), available here, which showed that not only did the mulleted one, Gene Michael, lie about his UMich law degree, but he also lied about working for Grant Thornton.

Today, SHZ issued a “Letter to Shareholders” where the company attempted to rebut some of the report’s claims. In the letter, available here, the company basically admits that Gene lied on his resume, and therefore in multiple filings. He never worked for Grant Thornton at all, instead he worked for a small firm called Gerbel and Butzbaugh CPAs. According to SHZ:

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And the Winner, by a Landslide: Gene Michael Bennett (CAGC, SHZ, LLEN, GPHG, CPHI)

Thank you to all of the readers who voted in this weekend’s poll. The numbers are in, and the overwhelming victor, by a huge margin, is the one, the only, Gene Michael Bennett.

Now most of you know about his “inactive” CPA status, his fake law degree, his organized crime linked CFO at China Agritech (CAGC), Gareth, and Gene’s association with many fine companies birthed through Richard Rappaport‘s reverse merger powerhouse Westpark Capital.

What readers may not know is that GMB still finds time to party. Check out this photo from a 2010 conference in Hong Kong: business up front (here), and from the AGBA site: party in the back (here). Yes, the mullet. Oh, and in case you are interested, at this undoubtably prestigious conference Gene Michael gave a presentation on, of all things, audit committee best practices. Fox guarding the henhouse? Gene speaking on good governance is almost as ridiculous as Bernie Madoff being the Chairman of the NASD, or the General Counsel of the SEC investing with Madoff. Sadly, all of those things actually happened. Irony. Delicious.

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