XI'AN, China, May 24, 2012 /PRNewswire-Asia/ -- China Integrated Energy, Inc. (OTC Pink: CBEH) ("China Integrated Energy" or the "Company"), a leading non-state-owned integrated energy company in the People's Republic of China, today announced the completion of the thorough Independent Investigation conducted by the Audit Committee into allegations raised in reports published in early 2011. Although the specific findings and conclusions of the Committee, as advised by its legal and forensic accounting professionals, remain privileged, the Company announced that the Committee has informed it that the Committee is satisfied that the vast majority of the short sellers' claims were baseless. Based on its investigation, however, the Committee has made observations, primarily regarding strengthening internal controls, which the Company will actively pursue.
Beginning in March 2011, short sellers calling themselves Sinclair Upton and Alfred Little published claims that China Integrated had made misrepresentations or other alleged wrongdoing regarding (1) cash in the bank, (2) related party transactions allegedly benefitting the Company's Chairman and his family, (3) the Company's overall financial health, as demonstrated by differences between Chinese filings with the SAIC and US filings with the SEC, (4) certain accounting practices, (5) the value and ownership of gas stations owned or leased by the Company, (6) the Company's affiliations with educational and research institutions, (7) the Company's auditors, (8) whether the Company enjoyed certain tax exemptions, (9) the Company's licenses , (10) the VIE structure, (11) the Company's wholesale distribution network, and (12) the Company's production of biodiesel.
In May 2011, the Audit Committee engaged Shearman & Sterling LLP to lead the independent investigation into these allegations. Each of these allegations was thoroughly investigated. While some issues remain as to production at the Company's
|SOURCE China Integrated Energy, Inc.|
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