According to Reuters, the FBI is assisting the Securities and Exchange Commission in its investigation of the reverse merger market.
Dealflow Media reported that “Jeffery Horner, a former PricewaterhouseCoopers accountant turned FBI agent, is working in the SEC’s microcap fraud task force. Some of the information that is gathered is being passed along to the FBI. The FBI is said to be looking into the allegations of accounting fraud made against some China-based companies trading in the U.S.”
As an SEC Lawyer I continue to recommend that smaller companies going public, whether Chinese or American, give serious consideration to going through the entire SEC review process in filing a full S-1 or Form 10 Registration Statement with the SEC, as my clients do in my GoPublicDirect method, as a preferable method of going public.