Dan David, cofounder of Skippack-based GeoInvesting L.L.C., has been tracking China-based firms listed on the New York and Nasdaq stock markets – and exposing what he says are phony sales, sham transactions, and investor rip-offs. He has been doing this since the China stock boom of the late 2000s, for clients that include short-sellers and other investors.
David cites examples like Sino Forest, which exaggerated its timber holdings, and China MediaExpress Holdings, which exaggerated sales, before they were delisted by Western exchanges. He also identified Puda Coal and poultry-raiser Yuhe International, which have traded at penny-stock prices since GeoInvesting published reports questioning their financial statements.