Educating China Education Alliance
posted by The Traveller on Tuesday, December 07, 2010
China Education Alliance (CEU) held a conference call this morning, in response to fraud allegations by Kerrisdale Capital. A transcript of the prepared statements has been filed with the SEC in a Form 8-K.
I want to point out that a large part of CEU's response to question no. 8 "Please explain the discrepancy between the financials filed with the SEC and the SAIC filings," is not the CFO's own statement, instead it has been copied word by word from an article I posted on this blog in early July: On SAIC and SEC Filings. I discovered that by accident. I have not been asked, nor have I authorized the use of my article in this context. Trading China has also not submitted this text for China Education Alliance's defense.
I don't believe that using Google search to find appropriate answers to investors' questions, and then using what has been found - unchanged and uncommented - as the company's response, will be very helpful in a conference call that has been held with the intention to restore management credibility and investor confidence.