1
00:00:09,000 --> 00:00:15,000


2
00:00:17,000 --> 00:00:21,000


3
00:00:21,200 --> 00:00:25,200


4
00:00:25,400 --> 00:00:28,400


5
00:00:29,906 --> 00:00:35,453
And let's start the journey
the length... together.

6
00:00:37,830 --> 00:00:39,206
Do not stick together,

7
00:00:40,792 --> 00:00:42,334
but on a different path...

8
00:00:42,877 --> 00:00:44,462
towards the same goal.

9
00:00:48,257 --> 00:00:51,469
The goal for < br /> build structure...

10
00:00:52,428 --> 00:00:54,138
world peace and justice,

11
00:00:55,848 --> 00:01:00,060
where all can stand equally
with equal dignity.

12
00:01:00,853 --> 00:01:02,104
First -tama,

13
00:01:02,229 --> 00:01:04,231
our market is open to China.

14
00:01:04,398 --> 00:01:06,901
This agreement will open
the Chinese market for us.

15
00:01:07,359 --> 00:01:08,999
I call our relationship 
with China...

16
00:01:09,028 --> 00:01:12,448
very positive... and complex.

17
00:01:14,533 --> 00:01:16,368
The free market is
the greatest power...

18
00:01:16,494 --> 00:01:18,496
for growth economy
in human history.

19
00:01:19,538 --> 00:01:21,040
I will make
a big agreement...

20
00:01:21,206 --> 00:01:23,250
and many good agreements
for the American people.

21
00:01:23,668 --> 00:01:25,169
Believe me!

22
00:01:41,894 --> 00:01:43,395
What is capitalism?

23
00:01:48,108 --> 00:01:50,486
What is an
system economy?

24
00:01:53,823 --> 00:01:57,242
Or is it an
tool that we can use...

25
00:01:57,409 --> 00:01:59,659
to make a profit
more for yourself...

26
00:01:59,662 --> 00:02:01,121
and take advantage
from others?

27
00:02:03,833 --> 00:02:05,417
I think, basically,

28
00:02:06,085 --> 00:02:08,587
it benefits them
who works hard,

29
00:02:09,213 --> 00:02:11,423
but it also benefits
those who...

30
00:02:12,132 --> 00:02:16,261
want to... take advantage of
from others.

31
00:02:28,024 --> 00:02:31,694
There are no good people in this story....

32
00:02:33,696 --> 00:02:34,864
including me.

33
00:02:50,254 --> 00:02:51,630
- Yes, yes, that's good.
- All right...

34
00:02:53,091 --> 00:02:54,675
What is the first memory
from your childhood?

35
00:02:57,428 --> 00:03:00,222
- That's a difficult question.
- Really?

36
00:03:00,973 --> 00:03:03,308
I... didn't expect it.

37
00:03:04,226 --> 00:03:06,979
I don't remember
's first memory from my childhood.

38
00:03:07,521 --> 00:03:09,861
I imagined when
was still two years old I eradicated...

39
00:03:09,899 --> 00:03:10,983
fraud somewhere.

40
00:03:12,276 --> 00:03:13,778
This is Dan David.

41
00:03:19,075 --> 00:03:21,285
The first time I met him,
we were drinking...

42
00:03:21,452 --> 00:03:23,704
at TGI Fridays at Penn Station,

43
00:03:24,204 --> 00:03:27,041
and he told me the story of
which is almost untrustworthy.

44
00:03:31,087 --> 00:03:32,292
Before the problem subsided...

45
00:03:32,296 --> 00:03:34,882
in the 2008 economic crisis,

46
00:03:35,507 --> 00:03:37,509
>

47
00:03:37,676 --> 00:03:39,303
Wall Street has found
a new way...

48
00:03:40,387 --> 00:03:42,187
packing garbage into gold.

49
00:03:42,187 --> 00:03:42,887
They planned
very big cheats...

50
00:03:44,308 --> 00:03:46,185
to all corners of the world.

51
00:03:46,351 --> 00:03:48,353
But this time, the lie
that became the basis...

52
00:03:49,521 --> 00:03:52,524
the evasion was
100 percent legal.

53
00:03:57,947 --> 00:03:59,947
Part of Dan
's story starts here,

54
00:04:00,199 --> 00:04:01,617
it's far from Wall Street.

55
00:04:03,619 --> 00:04:05,997
The small investment effort that
he runs with his partner, Maj,

56
00:04:06,246 --> 00:04:08,499
has collapsed because of the
stock exchange.

57
00:04:08,833 --> 00:04:10,126
Hour 3. What's wrong?

58
00:04:10,292 --> 00:04:12,492
People who have investment management funds
in 2008...

59
00:04:12,492 --> 00:04:14,692
close their funds and
start new funding.

60
00:04:15,047 --> 00:04:16,799
- Chris, have something?
- Complete...

61
00:04:16,966 --> 00:04:18,425
I'm working on.
I just want...

62
00:04:18,592 --> 00:04:20,469
We immediately decide
won't do it.

63
00:04:21,012 --> 00:04:23,012
We will get people
get the funds back.

64
00:04:23,555 --> 00:04:25,516
They need great achievements,
quickly.

65
00:04:26,184 --> 00:04:27,584
But because the western world...

66
00:04:27,584 --> 00:04:29,086
at the end of the depression again,

67
00:04:29,353 --> 00:04:30,771
the prospects are bleak.

68
00:04:36,068 --> 00:04:38,068
Not without hope
everywhere too, actually.

69
00:04:38,278 --> 00:04:41,032
People who already knew
directed Dan to China.

70
00:04:41,907 --> 00:04:43,826
That was the market which is very large.

71
00:04:45,995 --> 00:04:47,595
The only market where
people really...

72
00:04:47,595 --> 00:04:49,195
sure will go up, that is China.

73
00:04:50,499 --> 00:04:52,299
That will be the biggest
economy in the world.

74
00:04:52,299 --> 00:04:53,799
Let's invest
there now.

75
00:04:53,799 --> 00:04:56,552
It surprised me because
was completely different...

76
00:04:56,714 --> 00:04:58,423
with what I think,
will soar.

77
00:04:59,508 --> 00:05:01,677
There are certain cities,
once you visit,

78
00:05:01,844 --> 00:05:04,004
and a year later
You visit again, and suddenly...

79
00:05:04,004 --> 00:05:06,381
has stood a shopping center
which didn't exist before.

80
00:05:09,059 --> 00:05:10,259
Very dynamic.

81
00:05:10,394 --> 00:05:11,394
Gold fever.

82
00:05:13,564 --> 00:05:16,441
There are hardly any companies
based in China...

83
00:05:16,901 --> 00:05:20,279
that you invested in 2009
will make you lose.

84
00:05:21,239 --> 00:05:23,282
For Americans
pay attention to this,

85
00:05:23,448 --> 00:05:25,034
you will think,
"Gosh,

86
00:05:25,201 --> 00:05:27,452
" China really is a
golden land...

87
00:05:27,619 --> 00:05:29,496
rapid economic growth. "</ P>

88
00:05:29,663 --> 00:05:31,456
I really think ,
"Gosh, you know,

89
00:05:31,623 --> 00:05:33,043
American domination has ended
now.

90
00:05:33,084 --> 00:05:34,252
It's time."

91
00:05:40,674 --> 00:05:42,467
Everyone wants < br /> take part in China.

92
00:05:43,219 --> 00:05:44,595
There is only one problem,

93
00:05:45,470 --> 00:05:47,700
foreigners like Dan can't
invest directly...

94
00:05:47,723 --> 00:05:48,766
at the Chinese market.

95
00:05:50,059 --> 00:05:51,810
That's when a small
bank from California,

96
00:05:52,103 --> 00:05:53,104
Roth Capital, appeared.

97
00:05:55,689 --> 00:05:57,229
Roth found an unknown gap
...

98
00:05:57,233 --> 00:06:00,027
big banks, bringing
small Chinese companies...

99
00:06:00,194 --> 00:06:02,821
and register directly
on the United States Stock Exchange.

100
00:06:04,156 --> 00:06:06,700
Now And others and
can participate...

101
00:06:06,867 --> 00:06:08,410
in the economic miracle of China,

102
00:06:08,994 --> 00:06:10,724
and young sellers from the bank
have the opportunity...

103
00:06:10,746 --> 00:06:12,646
for great success with
the right approach.

104
00:06:13,165 --> 00:06:14,565
Hey, Jed, how are you today? </ P>

105
00:06:15,084 --> 00:06:16,127
Good, what are you getting? </ P>

106
00:06:16,543 --> 00:06:18,378
Yes, we're
running a new company. </ P>

107
00:06:18,587 --> 00:06:20,172
Will you hear
the transaction?

108
00:06:20,714 --> 00:06:22,382
Two days passed.
Five days passed.

109
00:06:22,507 --> 00:06:23,759
Are you interested in it?

110
00:06:23,926 --> 00:06:25,726
This is what we feel that 
the capacity of the company can run...

111
00:06:25,803 --> 00:06:27,054
after this acquisition.

112
00:06:27,221 --> 00:06:28,889
This is the security that
is fully registered.

113
00:06:29,056 --> 00:06:30,057
What do you want do?

114
00:06:30,266 --> 00:06:31,850
If they are interested,

115
00:06:32,101 --> 00:06:33,101
they will return to you.

116
00:06:33,102 --> 00:06:34,312
Yes. Yes. </ P>

117
00:06:34,561 --> 00:06:35,729
Yes, I'm interested. </ P>

118
00:06:35,896 --> 00:06:36,897
It's worth 2 million dollars. </ P>

119
00:06:37,064 --> 00:06:38,064
Register me there. </ P>

120
00:06:38,065 --> 00:06:39,065
Okay, good.

121
00:06:39,191 --> 00:06:40,318
And so it is.

122
00:06:40,484 --> 00:06:43,779
I tried to
be in the plot.

123
00:06:43,946 --> 00:06:45,281
Imagine the flow of the river.

124
00:06:46,073 --> 00:06:48,617
21 million dollars? < br /> That's a pretty good payment.

125
00:06:48,826 --> 00:06:50,746
- So just say...
- I'm worried, actually.

126
00:06:50,786 --> 00:06:53,038
I'm afraid that number
isn't from China. </ P>

127
00:06:54,290 --> 00:06:56,208
I never asked. </ P>

128
00:06:56,375 --> 00:06:58,794
Nobody asked it. </ P>

129
00:07:02,673 --> 00:07:05,384
Roth is an investment boutique bank...

130
00:07:05,717 --> 00:07:07,761
level two, or three
from California.

131
00:07:08,637 --> 00:07:10,537
Others call it
as a dormitory...

132
00:07:13,309 --> 00:07:16,020
Roth Capital will be behind
small companies...

133
00:07:16,228 --> 00:07:17,771
and encourage him to enter the exchange.

134
00:07:18,897 --> 00:07:22,943
They really advanced
in 2010, 2011.

135
00:07:23,610 --> 00:07:26,738
Roth was famous for
transactions with China...

136
00:07:26,905 --> 00:07:28,448
at that time.

137
00:07:29,616 --> 00:07:31,952
We went to some
Roth conferences.

138
00:07:32,119 --> 00:07:33,078
That's fun.

139
00:07:35,664 --> 00:07:38,167
Roth Capital Partners has held
various conferences...

140
00:07:38,334 --> 00:07:40,334
>

141
00:07:40,336 --> 00:07:42,754
for years
in Orange County, California.

142
00:07:43,005 --> 00:07:45,507
This will be the best
conference in America.

143
00:07:45,674 --> 00:07:47,634
Companies that < /> you've never heard before...

144
00:07:50,554 --> 00:07:53,015
offers
advantages to the community.

145
00:07:54,808 --> 00:07:56,601
And their business model
is simplicity itself.

146
00:07:56,768 --> 00:07:59,938
They will hold
for 3 days...

147
00:08:00,105 --> 00:08:02,607
100, 150 companies and
their PET will say,

148
00:08:02,774 --> 00:08:06,153
We think we will benefit
75 percent next year. "

149
00:08:06,737 --> 00:08:08,155
China in a few years
has changed...

150
00:08:08,322 --> 00:08:09,698
from interesting be important.

151
00:08:09,865 --> 00:08:12,076
And then change to
entertainment shows.

152
00:08:14,286 --> 00:08:16,872
Snoop Dogg, Billy Idol,
the dancers,

153
00:08:17,373 --> 00:08:19,458
ice sculpture,
Trojan-themed nights, buses,

154
00:08:19,624 --> 00:08:22,461
trains, planes...
then baijiu,

155
00:08:22,669 --> 00:08:24,629
that looks like motor lubricants > canned packaging.

156
00:08:24,796 --> 00:08:25,756
You drink and keep on drinking.

157
00:08:28,092 --> 00:08:30,428
You're ganbei, you toast to people,

158
00:08:30,635 --> 00:08:32,221
then they toast to the others,

159
00:08:32,388 --> 00:08:33,638
and goes on and on.

160
00:08:33,847 --> 00:08:35,147
Chinese people want to see...

161
00:08:35,147 --> 00:08:36,482
what kind of person you are,

162
00:08:36,892 --> 00:08:39,644
and some of them feel <br The more drunk you are, the more visible your personal personality is.

163
00:08:39,811 --> 00:08:42,856
semakin terlihatlah kepribadian aslimu.

164
00:08:46,193 --> 00:08:47,527
Hosts on...

165
00:08:47,694 --> 00:08:49,780
these conferences
sometimes are...

166
00:08:49,947 --> 00:08:52,699
bank chiefs who are happy
<i> stage -diving </ i>, Byron Roth.

167
00:08:53,575 --> 00:08:55,911
♪ I want to rock and roll
All night ♪

168
00:08:56,078 --> 00:08:57,413
Bring him!

169
00:08:57,579 --> 00:08:59,748
♪ And party every day,
I want to rock and roll ♪

170
00:08:59,873 --> 00:09:01,541
You know, he is
a man who started...

171
00:09:01,666 --> 00:09:04,044
a commodity business like that
when I was 16 years old.

172
00:09:04,544 --> 00:09:06,338
His father owned a farm business,

173
00:09:06,505 --> 00:09:08,755
and they would buy cows
at an auction and such.

174
00:09:08,757 --> 00:09:10,717
I mean, he is not
a simple man.

175
00:09:11,551 --> 00:09:13,304
We only do something
different.

176
00:09:13,553 --> 00:09:14,721
And that's the sort of thing we...

177
00:09:14,888 --> 00:09:16,188
as investment bank firm.

178
00:09:17,808 --> 00:09:19,935
For Byron Roth and
Matt and Dan,

179
00:09:20,102 --> 00:09:21,353
it's time to party.

180
00:09:22,313 --> 00:09:26,317
Between 2006 and 2011,
Roth held more than a dozen...

181
00:09:26,442 --> 00:09:29,320
conferences and generated trillions of
for Chinese companies.

182
00:09:29,320 --> 00:09:31,197
Byron , come here.
Hug me.

183
00:09:35,575 --> 00:09:39,579
Whoo!

184
00:09:45,419 --> 00:09:46,859
Narrator:
Roth isn't the only bank...

185
00:09:46,878 --> 00:09:48,578
who receives money
at the Chinese explosion.

186
00:09:49,340 --> 00:09:50,799
In New York, small operators...

187
00:09:50,966 --> 00:09:53,552
named Rodman & Renshaw
held a investment conference...

188
00:09:53,718 --> 00:09:55,095
in a different style,

189
00:09:55,762 --> 00:09:57,262
centers on the power of political stars...

190
00:09:57,264 --> 00:09:59,599
its leader, General Wesley Clark.

191
00:10:01,226 --> 00:10:03,145
In the Balkans, he helps 
/> negotiation of peace...

192
00:10:03,312 --> 00:10:04,604
between sworn enemies...

193
00:10:05,439 --> 00:10:07,039
and lead multi-national forces...

194
00:10:07,065 --> 00:10:09,109
stop the terror series.

195
00:10:09,276 --> 00:10:12,112
Wes Clark's life is like
an American story,

196
00:10:12,571 --> 00:10:13,738
but he can...

197
00:10:13,905 --> 00:10:15,949
become a great American president.

198
00:10:19,119 --> 00:10:21,621
First I want you to tell
who you really are,

199
00:10:21,788 --> 00:10:23,438
and tell a little
your background. </ p >

200
00:10:23,457 --> 00:10:25,257
Yes, I'm retired.
General Wes Clark.

201
00:10:25,667 --> 00:10:27,836
He graduated from West Point in 1966.

202
00:10:28,086 --> 00:10:30,506
Studied at Oxford, served in Vietnam,
returned home on a stretcher.

203
00:10:30,672 --> 00:10:32,572
Appointed as Commander
NATO's Supreme Ally.

204
00:10:32,632 --> 00:10:35,260
I joined the presidential campaign
in 2003, 2004.

205
00:10:35,511 --> 00:10:36,845
Entered in investment banking.

206
00:10:39,014 --> 00:10:41,016
Rodman & Renshaw
had a problem in the past.

207
00:10:41,808 --> 00:10:43,908
After years of
experiencing chaos in management,

208
00:10:43,935 --> 00:10:45,937
they declared bankrupt
in the late 90s.

209
00:10:46,605 --> 00:10:48,148
But with the trust of
Clark General...

210
00:10:48,315 --> 00:10:50,192
as a public face,
they got up... .

211
00:10:50,359 --> 00:10:51,776
to be a respected bank,

212
00:10:52,027 --> 00:10:54,427
hold parties
and sell Chinese stocks.

213
00:10:54,446 --> 00:10:57,115
They will usually
invite the presidents,

214
00:10:57,949 --> 00:11:00,702
the former presidents, <br / > Colin Powell,

215
00:11:00,827 --> 00:11:03,497
Diana Ross, Henry Kissinger. </ P>

216
00:11:03,914 --> 00:11:05,914
For an hour or two,
bring Henry Kissinger...

217
00:11:05,916 --> 00:11:08,252
or George Bush or
Wesley Clark to speak...

218
00:11:08,752 --> 00:11:10,352
no, oh, no,
it's like coming to...

219
00:11:10,379 --> 00:11:13,131
the sacred place of knowledge,
when, you know,

220
00:11:13,298 --> 00:11:15,175
Kissinger is
90 years old, talking.

221
00:11:15,342 --> 00:11:16,594
You can see what
is really.

222
00:11:16,718 --> 00:11:18,512
They rent names
for an hour or two.

223
00:11:18,678 --> 00:11:20,598
These people all
work for payment.

224
00:11:21,139 --> 00:11:22,459
That's how they are
making money.

225
00:11:22,459 --> 00:11:24,179
When people
are excited to speak,

226
00:11:24,184 --> 00:11:25,644
adds their strength.

227
00:11:26,144 --> 00:11:28,188
For 6 years General Clark
became chairman,

228
00:11:28,355 --> 00:11:30,905
Rodman & Renshaw brought
more than 40 companies from China...

229
00:11:30,941 --> 00:11:33,235
to the United States market
with the amount of value...

230
00:11:33,402 --> 00:11:35,613
more than 31 billion dollars.

231
00:11:39,658 --> 00:11:41,577
While Rodman & Roth
get paid...

232
00:11:41,743 --> 00:11:43,743
because bringing the Chinese
companies to the United States,

233
00:11:43,745 --> 00:11:45,295
the actual advantage
came when...

234
00:11:45,330 --> 00:11:48,417
these companies were
registered at main stock exchanges.

235
00:11:50,085 --> 00:11:52,205
Their analysts will
recommend risky stocks...

236
00:11:52,205 --> 00:11:54,624
as a good investment,
and the sellers...

237
00:11:54,714 --> 00:11:57,717
like Matt, will push it
into their investment network.

238
00:12:02,013 --> 00:12:03,763
When those stocks
rise quite high,

239
00:12:03,807 --> 00:12:05,807
banks and the insiders
can withdraw the funds,

240
00:12:05,892 --> 00:12:08,292
letting others survive
at a cost of luck.

241
00:12:09,480 --> 00:12:10,939
The point is,
registering the company...

242
00:12:11,106 --> 00:12:13,317
on the normal stock exchange
requires audits...

243
00:12:13,484 --> 00:12:14,652
and public inspection,

244
00:12:15,193 --> 00:12:17,195
but banks find ways
avoid them.

245
00:12:17,946 --> 00:12:20,865
They use a hidden process
which called the reverse merger.

246
00:12:21,783 --> 00:12:23,868
That is a dollar denomination.
It sells into,

247
00:12:24,035 --> 00:12:25,996
New York Stock Exchange, NASDAQ.

248
00:12:26,163 --> 00:12:28,332
Normally it is
shell company...

249
00:12:28,624 --> 00:12:30,959
which is a public stock...

250
00:12:31,418 --> 00:12:33,337
that is no longer operating.

251
00:12:33,545 --> 00:12:34,630
You can go to Nevada.

252
00:12:34,879 --> 00:12:36,214
There's a lot like that there,

253
00:12:36,548 --> 00:12:38,348
the company was originally a mining company
or whatever,

254
00:12:38,348 --> 00:12:41,017
and they were like holding on <br / > just there, waiting,

255
00:12:41,970 --> 00:12:44,139
You know, looking for the right partner...

256
00:12:44,306 --> 00:12:45,474
who wants to merge with them.

257
00:12:45,641 --> 00:12:47,141
So you need a shell company.

258
00:12:47,225 --> 00:12:48,810
Here's how it works < br>> reverse merger </ i>.

259
00:12:49,186 --> 00:12:50,937
Chinese companies
find a way...

260
00:12:51,104 --> 00:12:53,565
enter the American exchanges
with how to merge with...

261
00:12:53,732 --> 00:12:56,067
American shell companies
who are not operating...

262
00:12:56,234 --> 00:12:58,612
but legally registered...

263
00:12:58,778 --> 00:13:00,197
in the stock exchanges.

264
00:13:00,656 --> 00:13:02,056
The Chinese company
then took over...

265
00:13:02,056 --> 00:13:04,100
The shell company
was on the exchange.

266
00:13:04,242 --> 00:13:05,703
Presto! You made it in. </ P>

267
00:13:05,869 --> 00:13:07,969
You are a stock that
traded in the United States,

268
00:13:07,969 --> 00:13:09,513
and you can take part. </ P>

269
00:13:09,623 --> 00:13:11,124
And no one is suspicious.

270
00:13:15,086 --> 00:13:17,673
Between 2006 and 2012,

271
00:13:17,922 --> 00:13:21,009
more than 400 Chinese companies
are listed on the United States exchanges.

272
00:13:22,052 --> 00:13:24,095
80 percent are reverse mergers.

273
00:13:25,013 --> 00:13:27,265
Our exchanges monitor them .

274
00:13:27,641 --> 00:13:30,477
Our banks supervise
these companies.

275
00:13:30,935 --> 00:13:32,285
You don't need to
worry about it...

276
00:13:32,285 --> 00:13:34,085
because they exist
on the United States exchanges.

277
00:13:41,572 --> 00:13:42,573
Oh, you're in Hong Kong?

278
00:13:43,741 --> 00:13:45,283
It's at number 30.

279
00:13:45,992 --> 00:13:49,413
Between 2009
and mid 2010,

280
00:13:49,621 --> 00:13:52,832
China-based reverse mergers </ i>
...

281
00:13:53,542 --> 00:13:56,670
increased by several hundred percent
... average flat!

282
00:13:57,337 --> 00:13:58,838
Can you tell
the Chinese transaction last night?

283
00:13:59,839 --> 00:14:01,592
We are stuck in the
approach to our investment value.

284
00:14:02,467 --> 00:14:05,011
And with the approach
and our guidelines,

285
00:14:05,596 --> 00:14:08,348
it brings many Chinese-based
companies.

286
00:14:09,015 --> 00:14:10,415
And we get some
hundred percent...

287
00:14:10,415 --> 00:14:11,583
of all.

288
00:14:13,061 --> 00:14:15,689
Longwei Petroleum,
buy them, $ 1, $ 1.50. </ p >

289
00:14:15,939 --> 00:14:18,191
We sell, $ 5, $ 6,
profit 500 percent.

290
00:14:18,358 --> 00:14:19,943
L & L Energy,

291
00:14:20,110 --> 00:14:22,571
buy them under $ 2,
sell for between $ 9 and $ 10. </ P>

292
00:14:22,821 --> 00:14:24,782
Puda Coal, buying them
around $ 4,

293
00:14:24,948 --> 00:14:26,366
sold for around $ 7,
large companies. </ P>

294
00:14:26,825 --> 00:14:28,702
China Agriculture, CAGC .

295
00:14:28,868 --> 00:14:30,454
$ 9, sold for $ 28.

296
00:14:30,621 --> 00:14:31,913
Everything is a big company.

297
00:14:34,541 --> 00:14:35,793
We have returned.

298
00:14:42,000 --> 00:14:45,500
IN YOUR WATER, YOU'RE
CANNOT CATCH FISH

299
00:14:49,681 --> 00:14:50,724
Until 2010,

300
00:14:51,391 --> 00:14:53,184
Dan and his colleagues
at Roth & Rodman...

301
00:14:53,351 --> 00:14:55,312
made great success <br / > through Chinese stocks.

302
00:14:57,648 --> 00:14:59,399
Looks like it won't end,

303
00:14:59,650 --> 00:15:01,443
and maybe it won't end,
if it weren't for...

304
00:15:01,610 --> 00:15:03,779
a young American businessman...

305
00:15:03,945 --> 00:15:05,225
who went to Shanghai looking for...

306
00:15:05,238 --> 00:15:07,031
fortune that is completely different.

307
00:15:10,577 --> 00:15:11,662
The business I founded...

308
00:15:11,829 --> 00:15:13,413
is the first self-storage business...

309
00:15:13,580 --> 00:15:14,832
at mainland China.

310
00:15:14,998 --> 00:15:16,958
The name is Love Box Self Storage.

311
00:15:17,584 --> 00:15:18,669
World class.

312
00:15:19,670 --> 00:15:20,879
And we win awards...

313
00:15:21,045 --> 00:15:23,173
self-service facilities the best storage of
that year.

314
00:15:23,423 --> 00:15:25,175
When preparing the business,

315
00:15:25,342 --> 00:15:27,761
I helped write
"Doing Business in China for Beginners."

316
00:15:30,555 --> 00:15:33,350
Carson's father, a stock broker
in the United States,

317
00:15:33,725 --> 00:15:35,435
wants to invest in Orient Paper,

318
00:15:35,602 --> 00:15:37,813
The company that brought
Roth Capital entered the market...

319
00:15:37,979 --> 00:15:39,481
p>

320
00:15:40,524 --> 00:15:43,524
The company claims to do
a business worth 100 million dollars...

321
00:15:43,524 --> 00:15:45,024
a year and send tons...

322
00:15:45,024 --> 00:15:46,943
high quality paper
to all over China.

323
00:15:47,906 --> 00:15:49,706
It is one of
fast growing companies...

324
00:15:49,706 --> 00:15:51,041
that Roth & Rodman sold...

325
00:15:51,159 --> 00:15:52,952
and that bought by investors like Dan.

326
00:15:53,745 --> 00:15:55,497
The goal is to do research,

327
00:15:55,664 --> 00:15:57,081
make sure it's valid.

328
00:15:57,666 --> 00:15:59,209
His father will make a report.

329
00:15:59,417 --> 00:16:01,461
Again, it will be easy to understand...

330
00:16:01,628 --> 00:16:02,838
and analyze the business...

331
00:16:03,213 --> 00:16:06,299
the opposite of the company
American software.

332
00:16:07,217 --> 00:16:08,968
Carson and his friend <br / > check the factory,

333
00:16:09,135 --> 00:16:11,221
but immediately,
something is unnatural.

334
00:16:11,471 --> 00:16:14,182
The road is rural.
The condition is worrying.

335
00:16:14,349 --> 00:16:18,269
That road can't
hold large trucks...

336
00:16:18,729 --> 00:16:21,690
who goes in and out of the
facility all day.

337
00:16:22,524 --> 00:16:23,817
Then we go to the factory.

338
00:16:28,321 --> 00:16:29,865
It's really like a trash can.

339
00:16:30,240 --> 00:16:32,992
Half the machines are broken,
doesn't work.

340
00:16:34,160 --> 00:16:36,287
Samples rot in the front yard,

341
00:16:36,454 --> 00:16:37,539
without signs.

342
00:16:38,081 --> 00:16:39,917
And that is their main factory.

343
00:16:40,083 --> 00:16:41,501
There are puddles everywhere.

344
00:16:41,668 --> 00:16:43,461
This is a company
which is a paper company.

345
00:16:44,588 --> 00:16:46,715
Companies that have claimed
earn income...

346
00:16:46,882 --> 00:16:48,592
100 million US dollars,

347
00:16:48,759 --> 00:16:50,969
which is firmly
up from the previous year.

348
00:16:51,135 --> 00:16:53,471
How can this grow
50 percent per year?

349
00:16:53,638 --> 00:16:55,557
On the balance sheet,
they show...

350
00:16:55,933 --> 00:16:58,769
5 million dollars worth of raw materials.

351
00:16:59,227 --> 00:17:01,020
So they have a stack < br /> for the sake of piles...

352
00:17:01,187 --> 00:17:03,815
obsolete cartons in front.

353
00:17:04,190 --> 00:17:05,984
My friend climbed
one of the stacks...

354
00:17:06,150 --> 00:17:09,613
saw the rotted cartons,

355
00:17:10,029 --> 00:17:11,615
and when it came down, he said,

356
00:17:11,865 --> 00:17:13,867
"If this is worth 5 million dollars,

357
00:17:14,158 --> 00:17:16,286
then the world is much richer
than I know." </ P>

358
00:17:16,703 --> 00:17:19,038
Carson and his father looked at
each other at that time...

359
00:17:19,623 --> 00:17:23,376
ah, and said, "There might be something
with this stock,

360
00:17:23,794 --> 00:17:25,169
but it has nothing to do
with it."

361
00:17:35,346 --> 00:17:37,641
This business is really tricky.

362
00:17:38,016 --> 00:17:40,226
This won't work.
Absolutely fraudulent.

363
00:17:40,393 --> 00:17:41,979
I've never seen anything like this. p>

364
00:17:42,938 --> 00:17:44,648
Carson wrote the
report of its discovery...

365
00:17:45,189 --> 00:17:46,900
and announced
to withdraw the claim...

366
00:17:47,066 --> 00:17:48,401
by making an offer on the exchange...

367
00:17:48,568 --> 00:17:49,945
that the shares will drop.

368
00:17:51,070 --> 00:17:52,447
That will change his life,

369
00:17:53,114 --> 00:17:55,116
but more importantly,
it's the first time...

370
00:17:55,283 --> 00:17:57,410
someone found a shortage
in the miracle of China.

371
00:17:58,286 --> 00:17:59,788
I sent it to the public... .

372
00:17:59,955 --> 00:18:01,999
at the end of June 2010.

373
00:18:02,206 --> 00:18:04,459
I lasted a bit for
watching him closely,

374
00:18:04,626 --> 00:18:06,294
and getting closer,

375
00:18:07,170 --> 00:18:08,421
it just goes down a little.

376
00:18:08,880 --> 00:18:10,381
Then I sleep,

377
00:18:10,548 --> 00:18:13,217
I imagine the reaction
will report it.

378
00:18:13,927 --> 00:18:15,679
The next day was answered...

379
00:18:16,013 --> 00:18:17,597
>

380
00:18:17,931 --> 00:18:19,641
dropped 25 percent.

381
00:18:19,808 --> 00:18:21,267
And ended up sold down...

382
00:18:21,434 --> 00:18:23,353
as much as 55 percent...

383
00:18:23,520 --> 00:18:25,647
from when we sent the report.

384
00:18:26,230 --> 00:18:28,566
Even though it's China
and its economic growth is fast,

385
00:18:28,733 --> 00:18:30,652
the pigs don't fly in China,
and I think that's...

386
00:18:31,319 --> 00:18:33,488
There is a saying in China,

387
00:18:41,162 --> 00:18:43,456
Yes, so it means water.

388
00:18:43,497 --> 00:18:45,833
In clear water, there are no fish.

389
00:18:46,459 --> 00:18:47,544
Huh.

390
00:18:47,836 --> 00:18:49,838
That saying,
"Water cloudy makes it easy...

391
00:18:50,005 --> 00:18:51,798
catches fish. ",
explains many things...

392
00:18:51,965 --> 00:18:53,341
about what happened in China.

393
00:18:56,135 --> 00:18:58,638
Keabu- abuan raises the opportunity...

394
00:18:58,972 --> 00:19:00,223
for people seeking profit.

395
00:19:01,182 --> 00:19:04,019
That is the view of the Chinese,
muddy water (muddy water).

396
00:19:04,185 --> 00:19:05,979
I think it's the right name
...

397
00:19:06,145 --> 00:19:08,272
for the company and choose it. </ P>

398
00:19:17,281 --> 00:19:18,421
"Muddy Waters Report"...

399
00:19:18,421 --> 00:19:19,881
is a finding first big...

400
00:19:19,993 --> 00:19:22,037
about Chinese companies,
and starting to resonate...

401
00:19:22,370 --> 00:19:23,371
to all industries...

402
00:19:24,205 --> 00:19:26,124
no more than at Roth Capital,

403
00:19:26,541 --> 00:19:27,584
who plans the transaction.

404
00:19:29,836 --> 00:19:31,504
The target price is less than 1 dollar.

405
00:19:32,296 --> 00:19:34,049
You have photos of
dirty factories.

406
00:19:34,298 --> 00:19:36,259
You have paper photos.
recycling on the floor.

407
00:19:37,052 --> 00:19:39,345
Your people climbed < br />... photos.

408
00:19:41,900 --> 00:19:43,700
This is a company
worth 150 million dollars.

409
00:19:46,144 --> 00:19:47,353
It's a little crazy actually.

410
00:19:49,606 --> 00:19:51,942
I sell more from 22 million dollars
from the transaction.

411
00:19:57,488 --> 00:19:59,407
I remember going to Byron's office,

412
00:19:59,657 --> 00:20:01,257
asking,
"What happened here?" </ p >

413
00:20:01,659 --> 00:20:04,121
What "happened" is
the company has...

414
00:20:04,287 --> 00:20:06,915
done the classic step in
reverse-merger rules </ i>:

415
00:20:07,665 --> 00:20:09,709
search for an approval stamp
from a trusted source.

416
00:20:10,376 --> 00:20:11,976
Deloitte & Touche has
done...

417
00:20:11,976 --> 00:20:13,776
an independent investigation,
mention...

418
00:20:13,776 --> 00:20:15,526
that the company has
accurately...

419
00:20:15,526 --> 00:20:16,919
its financial statements.

420
00:20:17,258 --> 00:20:18,317
In the mortgage crisis,

421
00:20:18,509 --> 00:20:20,029
banks use rating agencies...

422
00:20:20,029 --> 00:20:22,097
to hide
their bad mortgage bonds.

423
00:20:22,097 --> 00:20:24,099
Now Orient Paper even
use...

424
00:20:24,265 --> 00:20:25,850
more prominent protectors...

425
00:20:26,476 --> 00:20:28,536
one of the Big Four
a global audit company. </ P>

426
00:20:30,438 --> 00:20:32,356
Every day, around the world,

427
00:20:32,523 --> 00:20:34,834
Deloitte professionals make
a meaningful impact...

428
00:20:35,193 --> 00:20:36,253
It turns out that dozens...

429
00:20:36,319 --> 00:20:37,612
<i > reverse mergers </ i> China...

430
00:20:37,779 --> 00:20:40,423
uses the same trick,
hides their cheating finances...

431
00:20:40,423 --> 00:20:42,258
behind the audits of the Big Four .

432
00:20:42,366 --> 00:20:44,661
It's like giving investors,
small stamps are flashy,

433
00:20:44,828 --> 00:20:46,287
"Believe in us."

434
00:20:47,413 --> 00:20:49,373
Because when we do
our goal ,

435
00:20:49,791 --> 00:20:51,250
all starts with integrity.

436
00:20:53,837 --> 00:20:56,339
Whether it's Deloitte or PwC,

437
00:20:56,756 --> 00:21:00,551
they hope those brands
have significant value...

438
00:21:00,718 --> 00:21:03,930
wherever they are,
but the truth is...

439
00:21:04,097 --> 00:21:05,974
the way the partnership was formed...

440
00:21:06,307 --> 00:21:10,145
is that each company
is in their respective forms.

441
00:21:10,311 --> 00:21:11,980
So they can sell...

442
00:21:12,271 --> 00:21:14,315
rent their names,
effectively.

443
00:21:14,565 --> 00:21:16,626
They all hope
this company doesn't fall.

444
00:21:19,612 --> 00:21:21,372
Some of the companies that
will say, "Look.

445
00:21:21,372 --> 00:21:22,873
We are audited by Pricewaterhouse."

446
00:21:22,949 --> 00:21:24,367
No, not so.

447
00:21:24,701 --> 00:21:26,911
They were audited by Pricewaterhouse China,

448
00:21:27,078 --> 00:21:28,621
which is the <i> franchise. </ i>

449
00:21:28,872 --> 00:21:30,581
It's not really Pricewaterhouse.

450
00:21:33,877 --> 00:21:35,628
In the United States,
when we face. ..

451
00:21:35,795 --> 00:21:38,173
mass fraud,

452
00:21:38,297 --> 00:21:40,608
people always ask me,
"Who is the auditor?"

453
00:21:41,092 --> 00:21:42,810
And I always say,
"Who cares?"

454
00:21:44,303 --> 00:21:46,097
It's important to understandably,

455
00:21:46,389 --> 00:21:48,039
and most people don't know this,

456
00:21:48,039 --> 00:21:50,374
that financial statements
are made by management,

457
00:21:50,601 --> 00:21:51,853
not by the auditor.

458
00:21:53,897 --> 00:21:57,316
The auditor's job is only to check
management work.

459
00:21:57,942 --> 00:22:00,070
And if management tries
to hide something...

460
00:22:00,653 --> 00:22:03,198
or has chosen the auditor,
they will hide it.

461
00:22:04,448 --> 00:22:05,783
If it doesn't work,

462
00:22:05,950 --> 00:22:07,318
they choose a backup plan,

463
00:22:07,702 --> 00:22:08,828
hire a reliable lawyer.

464
00:22:09,829 --> 00:22:12,540
Orient Paper hire <br / > Mitch Nussbaum from Loeb & Loeb...

465
00:22:12,749 --> 00:22:14,918
to answer
allegations of Muddy Waters. </ P>

466
00:22:16,211 --> 00:22:18,888
Mitch helped bring dozens of
Chinese companies into the market,

467
00:22:18,922 --> 00:22:20,006
and know how to fight it.

468
00:22:20,173 --> 00:22:22,259
There are empty sellers
who will advance...

469
00:22:22,425 --> 00:22:24,375
and put a short position
on the company...

470
00:22:24,375 --> 00:22:26,835
then throw away all
accusations against them...

471
00:22:26,846 --> 00:22:28,723
Firm Nussbaum conducted an investigation.

472
00:22:29,224 --> 00:22:30,800
The conclusion is not surprising...

473
00:22:30,808 --> 00:22:32,560
is that Carson
's accusations are false...

474
00:22:33,186 --> 00:22:34,938
and the report he leads to slander.

475
00:22:35,105 --> 00:22:37,223
How do I know what
those people said right?

476
00:22:37,223 --> 00:22:38,850
- That's a big problem.
- That's a big problem.

477
00:22:38,900 --> 00:22:40,277
All right,

478
00:22:40,526 --> 00:22:43,113
Let's talk about the case
where are you do...

479
00:22:43,280 --> 00:22:44,281
forensic investigations...

480
00:22:44,488 --> 00:22:45,656
- Hmm.
- Orient Paper.

481
00:22:46,032 --> 00:22:48,367
I'm not ready
in situations like this...

482
00:22:48,534 --> 00:22:51,329
discuss or represent
or add information...

483
00:22:51,495 --> 00:22:53,981
of what we publish publicly,
because it's not,

484
00:22:54,082 --> 00:22:55,208
you know, it's appropriate.

485
00:23:00,671 --> 00:23:02,571
Business in China is a
center of big profits....

486
00:23:02,590 --> 00:23:03,666
for Loeb & Loeb,

487
00:23:04,425 --> 00:23:05,843
but I imagine that...

488
00:23:06,010 --> 00:23:07,486
their reports are sometimes bad...

489
00:23:07,553 --> 00:23:09,497
cause problems for Nussbaum
and his colleagues.

490
00:23:10,473 --> 00:23:12,558
I imagine how diligent
they are...

491
00:23:12,725 --> 00:23:14,144
to satisfy regulators.

492
00:23:15,645 --> 00:23:17,272
Forget his lawyer.
Forget the banker.

493
00:23:17,772 --> 00:23:19,065
Bankers don't check
bookkeeping...

494
00:23:19,232 --> 00:23:20,317
and company reports.

495
00:23:20,483 --> 00:23:21,709
Lawyers don't check 
bookkeeping...

496
00:23:21,776 --> 00:23:22,860
and company reports.

497
00:23:23,153 --> 00:23:25,446
We did not check
to find out...

498
00:23:25,780 --> 00:23:27,157
whether the shipment was received.

499
00:23:27,573 --> 00:23:29,717
>

500
00:23:29,909 --> 00:23:31,609
I mean, there is no law firm
doing it.

501
00:23:31,744 --> 00:23:33,246
There is no law firm
doing it.

502
00:23:33,579 --> 00:23:34,899
This is part of the story...

503
00:23:34,914 --> 00:23:36,424
where I have to think both ways.

504
00:23:36,958 --> 00:23:39,210
Everyone we consider
as a supervisor,

505
00:23:39,418 --> 00:23:41,296
the lawyers, bankers, auditors, </ p >

506
00:23:42,088 --> 00:23:43,438
people who
make money...

507
00:23:43,438 --> 00:23:45,039
to make sure that
the market is clean,

508
00:23:45,466 --> 00:23:46,968
doesn't do that.

509
00:23:47,927 --> 00:23:50,013
They only make
documents as needed,

510
00:23:50,263 --> 00:23:51,889
accept payment, then leave.

511
00:23:52,598 --> 00:23:54,642
If companies
are lying, then what? </ p >

512
00:23:59,605 --> 00:24:01,482
The answers I received...

513
00:24:02,441 --> 00:24:06,029
were not enough to cover
my anxiety.

514
00:24:07,155 --> 00:24:08,939
And I felt they were
not deep enough... .

515
00:24:09,073 --> 00:24:10,616
when answering
my questions.

516
00:24:13,370 --> 00:24:14,453
And that's when...

517
00:24:14,787 --> 00:24:16,914
everything has changed
significantly for me.

518
00:24:17,456 --> 00:24:20,084
My eyes are open to
this concept...

519
00:24:20,335 --> 00:24:23,462
that there is another side to this company.

520
00:24:28,009 --> 00:24:30,887
>

521
00:24:31,137 --> 00:24:32,722
I know my duty.
I know what I can't do...

522
00:24:33,139 --> 00:24:35,599
if I just sit there.

523
00:24:36,226 --> 00:24:38,436
So for me, is... stop ,

524
00:24:39,103 --> 00:24:40,121
rest, and see
what happened.

525
00:24:48,612 --> 00:24:51,032
I went safari.

526
00:24:51,824 --> 00:24:54,327
I was at the Rodman & Renshaw conference,

527
00:24:54,660 --> 00:24:56,954
and the firm named
Muddy Waters...

528
00:24:58,289 --> 00:24:59,749
made a report on Orient Paper,

529
00:25:00,166 --> 00:25:03,753
and it decreased significantly.

530
00:25:03,920 --> 00:25:06,155
And this is the first time we
really heard...

531
00:25:07,840 --> 00:25:08,883
someone published a report
and called it fraud.

532
00:25:09,133 --> 00:25:11,135
We decided...

533
00:25:11,802 --> 00:25:15,098
whether we are proficient...

534
00:25:15,514 --> 00:25:16,807
we will get out of business.

535
00:25:16,933 --> 00:25:18,926
I try to contact,
whether it's the general director...

536
00:25:18,926 --> 00:25:20,085
or the property manager...

537
00:25:20,136 --> 00:25:21,419
Then we hire our own team. </ P>

538
00:25:22,021 --> 00:25:23,940
And our team goes to China...

539
00:25:24,107 --> 00:25:27,485
check out some companies that
are accused of fraud. </ P>

540
00:25:27,651 --> 00:25:30,113
Let's discuss
China Green Agriculture.

541
00:25:30,488 --> 00:25:32,156
China Green Agriculture
came to our attention...

542
00:25:32,323 --> 00:25:34,658
initially in 2009.

543
00:25:36,535 --> 00:25:39,471
And we invested long-term
what we think is...

544
00:25:39,471 --> 00:25:40,764
big fertilizer companies.

545
00:25:40,915 --> 00:25:42,417
Their stocks are rising.

546
00:25:43,000 --> 00:25:45,920
Release press is published about <br / > the transactions they made...

547
00:25:46,087 --> 00:25:47,630
with Nestlé and anyone.

548
00:25:48,547 --> 00:25:49,757
And calculated that...

549
00:25:49,924 --> 00:25:51,468
to fulfill the contract,

550
00:25:51,801 --> 00:25:53,261
dozens of trucks will transport...

551
00:25:53,428 --> 00:25:55,138
and send items
all day long.

552
00:25:56,806 --> 00:25:58,641
So, even though monitoring
private companies...

553
00:25:58,808 --> 00:25:59,934
in China it's illegal, </ p >

554
00:26:00,101 --> 00:26:02,236
the team is at risk of going to jail
for a long time...

555
00:26:02,236 --> 00:26:05,030
because of installing cameras
outside the factory gate.

556
00:26:05,982 --> 00:26:10,361
We recorded it for 344 days. </ P>

557
00:26:10,736 --> 00:26:12,846
The tape shows
the least activity there,

558
00:26:12,846 --> 00:26:14,646
very few employees go in and out. </ P>

559
00:26:17,327 --> 00:26:19,147
And think if
the company is running...

560
00:26:19,147 --> 00:26:21,632
according to what they mentioned,
they need...

561
00:26:21,632 --> 00:26:24,052
hundreds of employees and dozens of drivers.

562
00:26:24,083 --> 00:26:26,710
So what we do is,
we ask our investigators...

563
00:26:27,253 --> 00:26:28,587
masquerade as
<i> salesman </ i> tea.

564
00:26:29,672 --> 00:26:31,174
So he comes,
carrying a suitcase...

565
00:26:31,341 --> 00:26:34,218
full of tea,
he claims to be a <i> salesman </ i> tea...

566
00:26:34,385 --> 00:26:37,185
and wants to give examples of free tea
for everyone. </ p >

567
00:26:37,262 --> 00:26:38,662
So a total of 40 employees, right?

568
00:26:39,515 --> 00:26:41,767
Yes, right. 40 ordinary employees. </ P>

569
00:26:42,059 --> 00:26:44,603
Can you write
the number here? </ P>

570
00:26:44,895 --> 00:26:46,980
Okay, I'll write 40 people. </ P>

571
00:26:47,690 --> 00:26:49,775
So say how many employees /> is here...

572
00:26:50,151 --> 00:26:51,902
so I can give
enough samples.

573
00:26:52,170 --> 00:26:52,921
We get the answer.

574
00:26:52,945 --> 00:26:54,530
How many truck drivers? Only one? </ P>

575
00:26:54,655 --> 00:26:55,672
Yes. </ P>

576
00:26:56,199 --> 00:26:58,617
What does it mean if they
only have one truck driver? </ P>

577
00:26:59,827 --> 00:27:01,162
That means their volume...

578
00:27:01,329 --> 00:27:04,623
very much more sediditious
than their claims.

579
00:27:11,255 --> 00:27:12,882
In the first half of this year,

580
00:27:13,090 --> 00:27:16,719
Ah, Yongye both revenues and
their profits grew 100 percent .

581
00:27:17,053 --> 00:27:18,821
Calling China Green
Agriculture means...

582
00:27:18,888 --> 00:27:21,248
that Dan also questioned
the integrity of some people...

583
00:27:21,248 --> 00:27:23,348
with whom he raised
waves of Chinese stocks,

584
00:27:23,518 --> 00:27:24,968
People like Crocker Coulson,

585
00:27:25,102 --> 00:27:27,021
Stockbrokers who pushed
that stock...

586
00:27:27,313 --> 00:27:28,313
and the same dozens.

587
00:27:28,731 --> 00:27:31,067
What about, hm,
China Green Agriculture?

588
00:27:31,901 --> 00:27:34,862
So that's another story about the
fertilizer we...

589
00:27:35,572 --> 00:27:38,074
Once again, this kind of
goes back to me.

590
00:27:38,241 --> 00:27:39,283
- Yes.
- I believe that...

591
00:27:39,409 --> 00:27:41,160
organic fertilizer.

592
00:27:41,327 --> 00:27:42,537
That should also be...

593
00:27:43,037 --> 00:27:44,247
um...

594
00:27:44,622 --> 00:27:46,457
I really don't remember
completely about the company. </ P>

595
00:27:46,999 --> 00:27:49,210
From what we know ,
they do 10 percent...

596
00:27:49,377 --> 00:27:50,628
of the business they claim.

597
00:27:50,836 --> 00:27:52,046
Then resistance comes up.

598
00:27:53,548 --> 00:27:56,509
Releasing news
calling us terrorists,

599
00:27:56,926 --> 00:27:59,262
sabotage builders, criminals.

600
00:28:00,096 --> 00:28:02,557
There are statements from five Beijing financial
professors... </ p >

601
00:28:02,765 --> 00:28:04,601
who suspect foreign sellers...

602
00:28:04,767 --> 00:28:05,976
are rich and smart...

603
00:28:06,143 --> 00:28:08,143
are robbing small investors
from China...

604
00:28:08,178 --> 00:28:11,181
and ignore the risk of
exchange instability.

605
00:28:11,190 --> 00:28:12,625
They don't mention
any evidence.

606
00:28:13,109 --> 00:28:15,403
Let me be clear,
we try hard...

607
00:28:15,570 --> 00:28:17,380
trying to prepare
companies,

608
00:28:17,988 --> 00:28:19,574
you know, before representing
them...

609
00:28:19,865 --> 00:28:21,909
then found a problem -problems,

610
00:28:22,743 --> 00:28:24,345
serious problems, if we pay attention.

611
00:28:24,412 --> 00:28:25,580
There is no way of knowing...

612
00:28:25,871 --> 00:28:27,415
where are good characters or bad characters.

613
00:28:29,875 --> 00:28:32,711
The protector knows what is happening.

614
00:28:35,590 --> 00:28:37,390
Then we visit
investment banks.

615
00:28:37,592 --> 00:28:40,492
We show our evidence.
We say, "Look what we found.

616
00:28:41,095 --> 00:28:43,495
If you use us
and our team works hard,

617
00:28:43,514 --> 00:28:44,804
You must have better
products...

618
00:28:44,807 --> 00:28:46,307
for sale to the American people. "

619
00:28:47,184 --> 00:28:48,384
They said,
" Get out of here.

620
00:28:49,395 --> 00:28:52,815
>

621
00:28:52,982 --> 00:28:54,900
You ask us to fund you
and don't take 10 percent...

622
00:28:55,901 --> 00:28:58,946
of each transaction through this bank.

623
00:28:59,113 --> 00:29:02,113
The less we know, 
the better, and by the way,

624
00:29:02,116 --> 00:29:03,242
if you tell people what
you found, we will sue you.

625
00:29:05,703 --> 00:29:07,203
Go home to Skippack. "

626
00:29:08,038 --> 00:29:09,415
Then we go back to Skippack.

627
00:29:11,417 --> 00:29:13,252
We publish our research.

628
00:29:13,419 --> 00:29:15,212
Reports and based on
suspicions...

629
00:29:16,005 --> 00:29:18,215
about China
Green Agriculture. </ P>

630
00:29:20,468 --> 00:29:22,127
You know, nobody
trusted him.

631
00:29:23,012 --> 00:29:24,547
What happened to the leader?

632
00:29:25,389 --> 00:29:27,766
Nothing.
I mean, he saved the money. </ p >

633
00:29:28,934 --> 00:29:30,436
And that's all
about that, right?

634
00:29:30,603 --> 00:29:34,190
That 113 million dollars,
poof, is gone.

635
00:29:34,982 --> 00:29:37,776
Ah, because they don't
had a volume of that size.

636
00:29:39,778 --> 00:29:42,678
And realized he got the money
from the lies of those companies,

637
00:29:42,740 --> 00:29:43,824
and it bothered him,

638
00:29:44,450 --> 00:29:45,868
because he knows he will arrive...

639
00:29:46,118 --> 00:29:48,496
to what people say as
the financial dark side...

640
00:29:48,996 --> 00:29:49,996
sell empty.

641
00:29:56,962 --> 00:29:58,172
Is that selling empty? </ P>

642
00:29:58,422 --> 00:29:59,702
Hmmm, I thought first
about this. </ P>

643
00:29:59,716 --> 00:30:01,342
I want... this is always difficult. </ P>

644
00:30:01,509 --> 00:30:02,968
But sell. ..

645
00:30:03,135 --> 00:30:05,012
Is...

646
00:30:05,262 --> 00:30:07,072
Selling the first blank
economically is...

647
00:30:07,139 --> 00:30:09,767
maybe a few transactions
among, you know,

648
00:30:09,933 --> 00:30:11,435
two Cro-Magnon people,

649
00:30:11,602 --> 00:30:14,480
promised some people...
Cro-Magnon people other...

650
00:30:14,647 --> 00:30:15,790
part of the tiger fangs.

651
00:30:16,023 --> 00:30:17,525
This is Jim Chanos.

652
00:30:17,692 --> 00:30:19,017
He is the empty dean of the seller.

653
00:30:19,985 --> 00:30:22,963
And he already thwarted some of
from the biggest scams in history.

654
00:30:22,988 --> 00:30:24,615
If you want to think
the question of selling is empty,

655
00:30:24,782 --> 00:30:27,117
all kinds of advertising transactions
are selling empty .

656
00:30:27,284 --> 00:30:29,704
Airlines with
ticket sales in advance,

657
00:30:29,870 --> 00:30:32,206
for example,
risking a place for you.

658
00:30:32,623 --> 00:30:35,251
Selling blank bet that 
the stock will go down,

659
00:30:35,501 --> 00:30:36,586
than it should go up.

660
00:30:36,794 --> 00:30:38,128
So risking shares,

661
00:30:38,337 --> 00:30:41,131
you will often hear it
linked to "borrowing funds. "

662
00:30:41,382 --> 00:30:43,342
This is where many people
get confused.

663
00:30:43,760 --> 00:30:45,243
Here's a simple way
imagine it.

664
00:30:46,053 --> 00:30:47,680
Say I want to
risk sugar.

665
00:30:48,138 --> 00:30:50,057
I think sugar has been
too expensive...

666
00:30:50,224 --> 00:30:52,476
and will risk less than,
say, six months...

667
00:30:52,643 --> 00:30:53,936
from today's prices.

668
00:30:54,687 --> 00:30:55,979
I see it as a business opportunity.

669
00:30:56,355 --> 00:30:59,149
I go to neighbors and
borrow 1 pound of sugar.

670
00:30:59,358 --> 00:31:01,402
Then I sell sugar that...

671
00:31:01,569 --> 00:31:03,279
with the latest price of 1 dollar per pound.

672
00:31:03,487 --> 00:31:04,488
Yeah!

673
00:31:04,655 --> 00:31:05,989
After six months,

674
00:31:06,282 --> 00:31:08,242
when you have to return < br /> 1 pound of sugar my neighbor,

675
00:31:08,826 --> 00:31:11,912
I bought it on the market,
when the price went down,

676
00:31:12,455 --> 00:31:13,956
and I only spent 50 cents.

677
00:31:14,248 --> 00:31:15,874
I return
one pound of sugar,

678
00:31:16,041 --> 00:31:17,627
plus a little for flowers,

679
00:31:18,001 --> 00:31:20,087
and pocketed a difference of 50 cents.

680
00:31:20,379 --> 00:31:23,507
He got the sugar back, and
I made money from my bet.

681
00:31:24,258 --> 00:31:26,969
You want everyone who stays up on the exchange...

682
00:31:27,136 --> 00:31:29,305
believe what you say...

683
00:31:29,472 --> 00:31:31,490
if you think the company
is a cheat...

684
00:31:31,557 --> 00:31:34,059
or you think something is wrong 
in the company.

685
00:31:34,226 --> 00:31:36,312
People who are most interested
by selling empty...

686
00:31:36,479 --> 00:31:38,897
may be those who lost
their brains at birth.

687
00:31:39,106 --> 00:31:40,817
They are dissidents.

688
00:31:40,983 --> 00:31:42,983
Do I believe that
their motivation is...

689
00:31:43,019 --> 00:31:44,419
for the sake of world justice?

690
00:31:44,862 --> 00:31:47,047
No, I think their motivation
takes advantage.

691
00:31:47,114 --> 00:31:49,158
It's about cleaning up
our financial markets.

692
00:31:49,325 --> 00:31:50,734
It's about stopping fraud.

693
00:31:50,801 --> 00:31:52,386
Who wants me do is,

694
00:31:52,453 --> 00:31:53,579
I want to say...

695
00:31:53,788 --> 00:31:55,832
Remember this man,
Dick Fuld?

696
00:31:56,248 --> 00:31:58,448
He ran Lehman Brothers,
the bank collapsed...

697
00:31:58,483 --> 00:32:00,819
in the monetary crisis in 2008.

698
00:32:01,086 --> 00:32:02,839
He has opinions about empty sellers.

699
00:32:03,046 --> 00:32:06,091
Grab their hearts,
and eat before they die.

700
00:32:08,177 --> 00:32:09,970
So there are many problems here. p>

701
00:32:10,137 --> 00:32:11,514
There are many problems here.

702
00:32:12,931 --> 00:32:14,533
When I bet against that company
,

703
00:32:15,017 --> 00:32:16,644
because I believe,

704
00:32:16,811 --> 00:32:18,479
if they misinterpreted.

705
00:32:19,271 --> 00:32:21,440
And their trend line
doesn't matter at all for me.

706
00:32:22,650 --> 00:32:25,944
I am the one who will
bet against fraud.

707
00:32:31,200 --> 00:32:32,784
When Dan and Carson
began to see...

708
00:32:32,851 --> 00:32:34,436
other Chinese companies,

709
00:32:34,578 --> 00:32:36,539
Matt had just returned from his safari. </ P>

710
00:32:37,540 --> 00:32:39,667
He had been outside the radar
and think you want to...

711
00:32:39,834 --> 00:32:40,835
play where.

712
00:32:41,669 --> 00:32:43,237
So he asks
to his friend, Soren,

713
00:32:43,295 --> 00:32:45,305
an
financial industry lawyer from New York,

714
00:32:45,464 --> 00:32:47,174
meet him on the weekend
at mountains...

715
00:32:47,424 --> 00:32:48,843
and check out some documents...

716
00:32:49,009 --> 00:32:50,736
which he kept from
his tenure in Roth.

717
00:32:51,721 --> 00:32:54,056
In the process, they < >> find a new way...

718
00:32:54,223 --> 00:32:55,974
see the views about fraud.

719
00:32:57,142 --> 00:32:59,562
Matt said,
"Just look at these companies.

720
00:33:00,270 --> 00:33:01,304
Tell me what you think. "</ P>

721
00:33:06,360 --> 00:33:09,572
L & L Energy is the nominal
coal company. </ P>

722
00:33:13,033 --> 00:33:14,451
Typical RTO fraud...

723
00:33:14,618 --> 00:33:16,704
in its financial performance ..

724
00:33:16,871 --> 00:33:18,305
is too good to be true.

725
00:33:24,044 --> 00:33:27,130
The idea that
reverse merge </ i> is small...

726
00:33:27,339 --> 00:33:29,884
from the interior of China can...

727
00:33:30,050 --> 00:33:32,887
efficiently mine
and process coal...

728
00:33:33,387 --> 00:33:36,414
is far better than the best
coal companies in the world...

729
00:33:36,682 --> 00:33:37,808
is not a flexible thing.

730
00:33:39,142 --> 00:33:40,394
Check the document,

731
00:33:41,061 --> 00:33:42,329
they unpacked a new way...

732
00:33:42,396 --> 00:33:44,273
to understand what
actually happened...

733
00:33:44,440 --> 00:33:45,916
with hundreds of Chinese companies...

734
00:33:45,983 --> 00:33:47,818
list on the United States
Stock Exchange.

735
00:33:48,569 --> 00:33:51,572
We are back with
what is called SAIC documentation.

736
00:33:52,322 --> 00:33:54,825
That is a document from the State Office
from, uh...

737
00:33:55,367 --> 00:33:57,327
Oh, dear, I can't believe
can forget it.

738
00:33:57,912 --> 00:34:00,205
State Office, Adminis...

739
00:34:00,372 --> 00:34:02,291
State Administration Office.
Really?

740
00:34:02,499 --> 00:34:04,752
The most important thing here is...

741
00:34:05,127 --> 00:34:09,256
documentation in China tends to be
very accurate.

742
00:34:09,423 --> 00:34:13,469
or more accurate than
the entries registered...

743
00:34:13,886 --> 00:34:15,554
to the Securities and Exchange Commission.

744
00:34:16,597 --> 00:34:19,099
In China, companies can accurately
say...

745
00:34:19,266 --> 00:34:21,846
they make 10 million dollars,
while in the United States,

746
00:34:21,846 --> 00:34:24,446
they can report
yields 100 million dollars or more.

747
00:34:25,188 --> 00:34:26,983
SAIC documentation cannot be relied upon.

748
00:34:27,274 --> 00:34:29,359
They show whether the true
bear happened.

749
00:34:32,863 --> 00:34:34,865
And this... this is a cultural difference,

750
00:34:36,199 --> 00:34:40,704
we can't find
auditors in China who want to help,

751
00:34:41,079 --> 00:34:42,080
because I told you,

752
00:34:42,247 --> 00:34:44,541
if we find
people like that,

753
00:34:45,125 --> 00:34:47,085
the Chinese government will kill them.

754
00:34:47,670 --> 00:34:49,005
I mean, they will pick it up...

755
00:34:49,338 --> 00:34:51,089
and shoot his head.

756
00:34:53,216 --> 00:34:54,927
This is, from the beginning,
a fraud.

757
00:34:55,469 --> 00:34:58,096
The goal is to cheat,

758
00:34:58,263 --> 00:35:00,516
from the beginning, and we will never < br /> see it...

759
00:35:00,808 --> 00:35:03,352
on that scale on the United States exchanges.

760
00:35:03,560 --> 00:35:05,437
And that might be what
surprised people.

761
00:35:07,439 --> 00:35:09,817
That included Matt,
and the reaction said,

762
00:35:10,734 --> 00:35:12,569
maybe this shows
human nature,

763
00:35:13,153 --> 00:35:15,113
why we always
get stuck in that mess.

764
00:35:16,532 --> 00:35:18,408
He is aware that hundreds of millions < br /> million dollars from...

765
00:35:18,575 --> 00:35:20,786
the results of China's reverse merger
what he sells is fraud,

766
00:35:21,704 --> 00:35:24,999
but he reacts not with
remorse, but pragmatic .

767
00:35:25,666 --> 00:35:28,126
He wants to make sure he gets
a portion of the decline,

768
00:35:28,836 --> 00:35:30,128
so he switches parties...

769
00:35:30,295 --> 00:35:32,297
and becomes an empty seller,
like Dan.

770
00:35:34,050 --> 00:35:38,136
I... I did it
and produced 78 percent...

771
00:35:38,804 --> 00:35:40,305
for 4 days.

772
00:35:46,979 --> 00:35:49,147
Finally LLEN collapsed.

773
00:35:49,899 --> 00:35:51,734
For empty sellers like
and Matt,

774
00:35:52,109 --> 00:35:53,736
the documentation is a piece of
the last puzzle...

775
00:35:54,528 --> 00:35:56,655
is not just evidence from one company
or another...

776
00:35:57,197 --> 00:35:58,782
but data from all company.

777
00:35:59,783 --> 00:36:01,035
For the first time,
they can see...

778
00:36:01,201 --> 00:36:02,745
the entire scope of the fraud.

779
00:36:03,620 --> 00:36:05,122
I don't know the amount,

780
00:36:05,330 --> 00:36:06,874
>

781
00:36:07,041 --> 00:36:08,667
but the losses of
American investors...

782
00:36:08,834 --> 00:36:11,034
reached billions of dollars.

783
00:36:11,087 --> 00:36:12,379
30 billion dollars, I think the figure
reached 30 billion dollars

784
00:36:12,546 --> 00:36:14,464
- 20 billion dollars.
- 50 billion dollars.

785
00:36:14,631 --> 00:36:17,300
Between 20 billion dollars
and 50 billion dollars...

786
00:36:17,467 --> 00:36:20,345
of Exchange capitalization of
registered shares...

787
00:36:20,596 --> 00:36:23,015
in the United States may be
worthless.

788
00:36:23,181 --> 00:36:26,643
Mediocre investors...

789
00:36:26,977 --> 00:36:29,187
so that results in...

790
00:36:29,354 --> 00:36:31,189
ordinary people in the community too.

791
00:36:34,234 --> 00:36:36,570
If one company
is so insolent,

792
00:36:37,905 --> 00:36:39,949
what does it mean for the whole exchange?

793
00:36:42,076 --> 00:36:44,369
More than 300 reverse mergers </ i>...

794
00:36:44,745 --> 00:36:46,872
with businesses operating in China.

795
00:36:48,999 --> 00:36:50,500
Everything can be fraud.

796
00:36:52,419 --> 00:36:54,312
And the funds may be
never saved,

797
00:36:54,588 --> 00:36:57,382
and if you get caught,
there are no consequences.

798
00:36:58,508 --> 00:37:00,202
When you discuss
investment banks,

799
00:37:00,269 --> 00:37:01,395
especially the larger ones,

800
00:37:01,804 --> 00:37:05,682
fraud is processed in
income reports. </ P>

801
00:37:06,934 --> 00:37:08,444
How much banks
investments...

802
00:37:09,019 --> 00:37:12,355
have to pay a fine for
this year fraud?

803
00:37:13,899 --> 00:37:16,234
Wells Fargo? Never. </ P>

804
00:37:16,986 --> 00:37:18,862
Bank of America in the past.
Ever. </ P>

805
00:37:19,196 --> 00:37:20,948
Morgan Stanley di masa lalu.
Pernah.

806
00:37:21,448 --> 00:37:23,533
Nobody is jailed.
Only fine.

807
00:37:24,160 --> 00:37:25,661
So it becomes...

808
00:37:26,244 --> 00:37:28,288
becomes part of what you budgeted for
.

809
00:37:28,956 --> 00:37:30,415
>

810
00:37:34,586 --> 00:37:37,006
You budgeted fraud.

811
00:37:37,173 --> 00:37:39,175
Beliefs and deception might
begin with the fact...

812
00:37:39,549 --> 00:37:41,426
that Flint, Michigan,
where he grew up,

813
00:37:43,804 --> 00:37:46,689
is a victim of
such fraud.

814
00:37:46,698 --> 00:37:48,575
Large companies make
grandiose promises to the community there,

815
00:37:50,186 --> 00:37:53,386
and finally , can't fulfill it.

816
00:37:53,396 --> 00:37:55,315
And see how lies that
originated from those corporate offices...

817
00:37:56,733 --> 00:37:59,110
have an impact on ordinary people.

818
00:37:59,195 --> 00:38:00,654
Where other financial people
see the market sense,

819
00:38:01,530 --> 00:38:03,991
And looking at his hometown,

820
00:38:16,628 --> 00:38:18,396
is abandoned, full of ghosts. </ P>

821
00:38:22,051 --> 00:38:23,301
Regions this is pretty good
30 years ago.

822
00:38:30,100 --> 00:38:31,309
This was once a school.

823
00:38:35,231 --> 00:38:37,107
But for stadar now,
is rather hard.

824
00:38:39,651 --> 00:38:43,021
I mean, I can't even imagine
10-year-olds, 11, and 12 years...

825
00:38:43,088 --> 00:38:44,923
playing baseball now. </ P>

826
00:38:53,790 --> 00:38:54,875
No, I'm really...

827
00:38:55,042 --> 00:38:56,543
I'm happy to grow there, of course .

828
00:39:02,799 --> 00:39:04,134
Companies lie.

829
00:39:06,011 --> 00:39:07,345
Companies lie.

830
00:39:11,474 --> 00:39:14,561
Those companies
only care for themselves...

831
00:39:15,478 --> 00:39:17,731
not for the community,
not for the community.

832
00:39:18,857 --> 00:39:21,359
People need to care about
with themselves.

833
00:39:26,323 --> 00:39:27,407
Flint is a great city.

834
00:39:27,991 --> 00:39:29,451
Always a great city. </ P>

835
00:39:31,870 --> 00:39:33,122
The community is hardworking. </ P>

836
00:39:34,664 --> 00:39:36,083
The people
are very hard workers. </ P>

837
00:39:42,131 --> 00:39:43,190
Alright, pay attention. </ P>

838
00:39:46,426 --> 00:39:49,221
I grew up in Flint...

839
00:39:49,512 --> 00:39:51,056
dan tetap di sana selamanya.

840
00:39:53,600 --> 00:39:54,935
Then job opportunities disappear.

841
00:40:06,071 --> 00:40:08,047
And have investigated
companies...

842
00:40:08,047 --> 00:40:09,048
from the bottom up.

843
00:40:09,074 --> 00:40:10,508
Matt has seen in detail...

844
00:40:10,575 --> 00:40:11,868
their SEC documentation.

845
00:40:12,661 --> 00:40:14,246
They are together aware...

846
00:40:14,412 --> 00:40:16,414
how simple it is
that practice.

847
00:40:18,167 --> 00:40:20,085
Let's say you want
to plan cheating.

848
00:40:20,109 --> 00:40:23,109
HOW DO I WORK?

849
00:40:23,255 --> 00:40:25,465
What you will do is,
you need a factory.

850
00:40:25,465 --> 00:40:26,499
>

851
00:40:27,050 --> 00:40:28,444
You need leadership.

852
00:40:28,510 --> 00:40:29,761
Then you need to find someone,

853
00:40:29,928 --> 00:40:33,056
protector, for example.

854
00:40:33,807 --> 00:40:35,934
An inventor said,
"This is your business .

855
00:40:36,101 --> 00:40:38,387
What can you do with
100 million dollars? "

856
00:40:38,436 --> 00:40:40,189
He will help with
his connections with the auditors,

857
00:40:40,856 --> 00:40:42,274
third level banks that are legal.

858
00:40:42,732 --> 00:40:45,027
"That will be...
will be a game changer."

859
00:40:45,402 --> 00:40:47,579
"I will buy my suit.
I can do this.

860
00:40:47,579 --> 00:40:49,415
I can do that.
I'll be this big. "

861
00:40:49,614 --> 00:40:50,673
Get to the United States.

862
00:40:50,907 --> 00:40:52,492
This person or company in China...

863
00:40:52,826 --> 00:40:54,636
will say, "Okay, I'll
find you...

864
00:40:54,703 --> 00:40:57,497
100 million dollars, but this is what you have to do
.

865
00:40:57,873 --> 00:41:00,625
You have to telling the public
you are already this big. "

866
00:41:01,251 --> 00:41:03,253
You just have to make sure
marks all the columns...

867
00:41:03,795 --> 00:41:05,755
to make it available for sale.

868
00:41:05,922 --> 00:41:08,466
And don't worry, because
if they find out...

869
00:41:08,633 --> 00:41:10,844
that we lie,
you won't go to jail.

870
00:41:10,969 --> 00:41:12,889
- You're in China . "
- All you need is...

871
00:41:12,889 --> 00:41:14,209
kongkalingkong from
some people,

872
00:41:14,209 --> 00:41:15,689
and you can cheat
whoever you want.

873
00:41:15,689 --> 00:41:17,269
And if we are lucky enough
get the money...

874
00:41:17,269 --> 00:41:18,409
and they know you are lying ,

875
00:41:18,409 --> 00:41:19,609
you still get the money.

876
00:41:19,895 --> 00:41:22,431
So there's really no risk.
I manage everything.

877
00:41:22,772 --> 00:41:25,025
All you do is 
/> keep lying.

878
00:41:26,860 --> 00:41:28,611
You know,
if you want to become PET...

879
00:41:28,778 --> 00:41:30,678
from a public company,
you have to be educated,

880
00:41:32,115 --> 00:41:35,160
college, MBA.

881
00:41:35,327 --> 00:41:37,454
Those people
don't have one.

882
00:41:38,496 --> 00:41:40,123
Nothing, mostly those people.

883
00:41:40,623 --> 00:41:43,460
They come from cities
level two or three in China. </ P>

884
00:41:43,626 --> 00:41:46,154
They come from business practices
in different ways...

885
00:41:48,173 --> 00:41:50,873
Sort of the way businesses run < br /> their own candy shop...

886
00:41:52,719 --> 00:41:56,432
A chicken farmer from China
one day does not wake up...

887
00:41:56,973 --> 00:42:01,103
and understands how to cheat
the United States capital market.

888
00:42:01,686 --> 00:42:03,939
From company formation-
This small company,

889
00:42:04,773 --> 00:42:06,442
is all about stock market fraud.

890
00:42:08,526 --> 00:42:10,728
When Dan, Matt,
and other empty sellers...

891
00:42:10,728 --> 00:42:12,178
found basic characterization...

892
00:42:12,239 --> 00:42:15,209
of Chinese cheating, they started
unpacking it, one by one.

893
00:42:16,785 --> 00:42:19,597
Puda Coal, its leader,
stole the funds investor.

894
00:42:21,206 --> 00:42:23,300
SINO Clean Energy,
advanced technology.

895
00:42:23,666 --> 00:42:25,502
This company advertises
on buses.

896
00:42:26,336 --> 00:42:28,580
They will break up coal,
mix it with water,

897
00:42:28,713 --> 00:42:31,508
and that is phenomenal energy...
.

898
00:42:32,384 --> 00:42:36,305
They rent none other than
Loeb & Loeb to sue us.

899
00:42:37,013 --> 00:42:38,348
China Integrated Energy,

900
00:42:39,266 --> 00:42:42,018
for weeks,
no activity in this company.

901
00:42:42,394 --> 00:42:44,354
Suddenly suddenly,
starts life.

902
00:42:44,771 --> 00:42:46,064
The lights start turn on.

903
00:42:46,731 --> 00:42:49,234
Next day,
Rodman & Renshaw appears...

904
00:42:49,443 --> 00:42:50,710
with a bus full of investors.

905
00:42:52,154 --> 00:42:55,115
Take a tour at their facility, < br /> go back to the bus, then leave.

906
00:42:55,740 --> 00:42:56,908
All lights turn off again.

907
00:42:59,369 --> 00:43:01,613
Rodman investors,
invest a large amount of money.

908
00:43:03,123 --> 00:43:06,584
You continue to find attractive
anomalies in China.

909
00:43:06,793 --> 00:43:09,371
I'm talking to people
who run the gas industry...

910
00:43:09,371 --> 00:43:10,639
steel processing plant suppliers.

911
00:43:10,672 --> 00:43:12,466
>

912
00:43:12,674 --> 00:43:14,359
"We made profits
from this now,"

913
00:43:14,759 --> 00:43:17,513
then they said,
"Yes, but there is a problem.

914
00:43:17,762 --> 00:43:21,433
It looks like the gauge is wrong ,

915
00:43:21,641 --> 00:43:23,477
that we billed to the factory
steel processing. "

916
00:43:23,685 --> 00:43:25,220
I said," When did you
find out? "

917
00:43:25,220 --> 00:43:26,637
They said," Just last week. "

918
00:43:27,189 --> 00:43:29,065
I said," And the gauge is wrong.
How big is it? "

919
00:43:29,399 --> 00:43:31,651
" Uh, the amount corresponds to
our advantage.

920
00:43:33,570 --> 00:43:34,654
very strange. "

921
00:43:37,500 --> 00:43:42,500
GUANXI OR EXCHANGE GOODNESS

922
00:43:43,955 --> 00:43:47,291
If you respect me,
I will respect you.

923
00:43:47,834 --> 00:43:52,505
If this respectful reply is about
profit, I will give up.

924
00:43:53,048 --> 00:43:55,008
I was told to say hello
Dear Ho,

925
00:43:55,842 --> 00:43:57,986
whose ancestors have become
the triumph of their territory.

926
00:43:58,303 --> 00:44:01,515
I'm a polite Ho,
whose name stands in the shadow...

927
00:44:01,848 --> 00:44:03,725
to become a great nation.

928
00:44:03,975 --> 00:44:08,313
In China, business is done
following tradition...

929
00:44:08,605 --> 00:44:11,900
does not have a strong legal system.

930
00:44:12,234 --> 00:44:16,154
So people prefer
trust and personal relationships.

931
00:44:16,363 --> 00:44:18,865
I will benefit
very trustworthy.

932
00:44:20,075 --> 00:44:23,245
There is a lot of focus in shaping < br /> the relationship...

933
00:44:23,537 --> 00:44:25,372
so you can build
trust.

934
00:44:25,663 --> 00:44:29,667
The Chinese nation calls this network
this personal relationship, guanxi. </ p >

935
00:44:30,126 --> 00:44:33,213
So I give you a gift
and I help you,

936
00:44:33,630 --> 00:44:35,840
and you owe me.
You scratch my back,

937
00:44:36,132 --> 00:44:37,332
I will scratch your back.

938
00:44:38,176 --> 00:44:40,095
I will scratch your back.

939
00:44:40,387 --> 00:44:42,264
p>

940
00:44:42,264 --> 00:44:45,516
If you give enough help to people,

941
00:44:46,851 --> 00:44:49,187
you can ask...

942
00:44:49,438 --> 00:44:50,606
their help might be rather
less fun for them. </ p >

943
00:44:54,526 --> 00:44:57,571
And they feel
have an obligation...

944
00:44:58,113 --> 00:45:00,698
but also representing something stronger
is crucial.

945
00:45:03,159 --> 00:45:05,961
And having told me that pursuing
Chinese companies,

946
00:45:05,961 --> 00:45:08,863
can be dangerous. But it wasn't until
when he told me about...

947
00:45:08,863 --> 00:45:11,857
Alfred Little who really
made me understand what he meant. </ P>

948
00:45:12,461 --> 00:45:14,630
When reports < br /> it began to appear,

949
00:45:14,921 --> 00:45:16,665
there was a website
named Alfred Little.

950
00:45:17,507 --> 00:45:20,427
And it began to release very important
reports,

951
00:45:20,760 --> 00:45:22,137
sales of leather shoes, like,

952
00:45:22,471 --> 00:45:24,889
"We go and sit
in front of a factory,

953
00:45:25,348 --> 00:45:26,516
and this is what we found."

954
00:45:27,976 --> 00:45:31,271
The website describes
Alfred Little...

955
00:45:31,605 --> 00:45:34,983
as an investor with
35 years experience,

956
00:45:35,233 --> 00:45:36,943
I think he seems
working at Deloitte.

957
00:45:37,235 --> 00:45:38,936
You know, maybe he
lives in Shanghai.

958
00:45:38,945 --> 00:45:41,056
I mean, there must be a background
the story, right?

959
00:45:42,157 --> 00:45:43,741
Basically
he said that,

960
00:45:44,117 --> 00:45:45,985
all
companies in China were cheating,

961
00:45:47,078 --> 00:45:48,137
the transaction was nonsense.

962
00:45:49,080 --> 00:45:50,290
And I underestimated it.

963
00:45:50,624 --> 00:45:52,750
I don't remember the date,
but there is an email saying,

964
00:45:53,209 --> 00:45:56,421
"I'm going to New York.
Let's meet." </ P>

965
00:45:57,005 --> 00:45:59,675
I'm like, "Oh , okay, "
then I go to a hotel,

966
00:46:00,258 --> 00:46:02,051
and that person is there,
and he says,

967
00:46:02,260 --> 00:46:03,336
" Oh, I'm Jon Carnes. "

968
00:46:03,845 --> 00:46:05,472
Like, "I am...

969
00:46:05,681 --> 00:46:06,931
you know, I'm Alfred Little."

970
00:46:16,566 --> 00:46:18,985
As one of the few Westerners
who still works as...

971
00:46:19,194 --> 00:46:20,236
empty sellers in China,

972
00:46:20,778 --> 00:46:23,281
Carnes knows how to be careful
and cover up the tracks.

973
00:46:24,533 --> 00:46:26,535
Posing as Alfred Little
making it safe.

974
00:46:28,203 --> 00:46:30,163
But when he decided
to check Silvercorp,

975
00:46:30,455 --> 00:46:32,790
mining company
in the interior of Hunan province ,

976
00:46:33,583 --> 00:46:36,586
he and his investigator
found the dark side of guanxi.

977
00:46:37,337 --> 00:46:39,464
You know, some companies
are more aggressive than others,

978
00:46:39,881 --> 00:46:44,678
but in general, I find
that the more the report matches the reality,

979
00:46:45,053 --> 00:46:48,848
the more difficult for the company
to explain...

980
00:46:50,099 --> 00:46:51,267
the negative reality,

981
00:46:52,435 --> 00:46:56,314
moreover they will do
some sort of retaliation.

982
00:46:57,190 --> 00:46:59,401
Because if the company
can't answer...

983
00:46:59,568 --> 00:47:01,611
questions from the sellers,

984
00:47:02,362 --> 00:47:07,450
they will look for other ways
to stop the negative report.

985
00:47:10,495 --> 00:47:12,997
While Alfred Little started publicly
questioning Silvercorp,

986
00:47:13,456 --> 00:47:15,083
the company's stock price
began to fall.

987
00:47:15,958 --> 00:47:17,502
Company officials
asked help...

988
00:47:17,711 --> 00:47:18,920
the local officials.

989
00:47:19,962 --> 00:47:21,881
The police began to threaten
the head of Little's research team,

990
00:47:22,340 --> 00:47:23,216
Kun Huang,

991
00:47:24,384 --> 00:47:26,469
holding him for hours
or days,

992
00:47:27,220 --> 00:47:29,180
finding out who
they worked for.

993
00:47:31,808 --> 00:47:33,851
Carnes knew that
there were no troops come.

994
00:47:34,644 --> 00:47:36,547
He asked for SEC's help,
and they said...

995
00:47:36,548 --> 00:47:38,270
their phone even
could not contact China.

996
00:47:38,981 --> 00:47:40,181
let alone protect him and his team.

997
00:47:40,232 --> 00:47:41,984
I'm looking for Yi's officer.

998
00:47:43,194 --> 00:47:45,405
He sent other investigators
to record the evidence secretly...

999
00:47:45,739 --> 00:47:48,617
that local police officers
help sell Silvercorp.

1000
00:47:49,200 --> 00:47:52,621
He will use the video as
a tool for removing Kun from prison.

1001
00:47:53,079 --> 00:47:54,830
Have you contacted
Kun Huang?

1002
00:47:55,081 --> 00:47:55,915
Communist Party Officer: No.

1003
00:47:56,082 --> 00:47:57,500
Officer: No longer
related to him.

1004
00:47:57,666 --> 00:48:01,587
Officer: Kun Huang is meaningless.
Like a pebble.

1005
00:48:03,005 --> 00:48:05,382
Officer: Dispose of one
and no one will care.

1006
00:48:05,674 --> 00:48:09,303
Officer: He is Chinese
who violates the law in China.

1007
00:48:10,471 --> 00:48:15,351
This issue... If Silvercorp doesn't make it < This mess...

1008
00:48:16,227 --> 00:48:18,896
Everything will be finished by the end of last year.

1009
00:48:20,189 --> 00:48:26,362
Officers: Don't worry, we won't
sue innocent people. </ p >

1010
00:48:42,128 --> 00:48:48,592
We started investigating Silvercorp
around May or June 2011.

1011
00:48:49,093 --> 00:48:52,972
We were told by
other investors...

1012
00:48:53,097 --> 00:49:00,604
that Silvercorp did < br /> silver mining in China,

1013
00:49:00,980 --> 00:49:06,152
and viewed very high.

1014
00:49:08,613 --> 00:49:10,031
Kun has made a secret video...

1015
00:49:10,198 --> 00:49:11,867
about mining business
Silvercorp,

1016
00:49:12,450 --> 00:49:14,327
and some local officers
they bribed.

1017
00:49:15,244 --> 00:49:17,664
He was detained twice
at the end of 2011,

1018
00:49:18,373 --> 00:49:20,041
and the officers promised
would not bother him...

1019
00:49:20,249 --> 00:49:21,959
if he wants to expose
and report Alfred Little.

1020
00:49:23,044 --> 00:49:25,129
He refuses,
then in that year,

1021
00:49:25,338 --> 00:49:28,049
he is banned at the border 
while trying to fly to Hong Kong.

1022
00:49:29,091 --> 00:49:34,054
When I first entered
the detention center...

1023
00:49:34,388 --> 00:49:42,146
no one told me
that I had the right to speak with a lawyer .

1024
00:49:44,523 --> 00:49:49,486
I know that the investigators
are collaborating with Silvercorp,

1025
00:49:49,612 --> 00:49:51,030
and they want revenge.

1026
00:49:56,535 --> 00:49:59,872
I came at midnight
and they put me in a cell.

1027
00:50:00,581 --> 00:50:06,420
The room is only
30 square meters.

1028
00:50:12,635 --> 00:50:15,971
The room was full of people
who slept on the floor.

1029
00:50:19,099 --> 00:50:24,563
I was afraid. I don't know how long
I will be detained. </ P>

1030
00:50:26,440 --> 00:50:30,486
I didn't do anything illegal. </ P>

1031
00:50:30,653 --> 00:50:34,448
But finally I was detained in
China for two years.

1032
00:50:39,828 --> 00:50:42,248
It was a big disaster for me.

1033
00:50:43,123 --> 00:50:45,459
It destroyed my family.

1034
00:50:48,754 --> 00:50:52,508
But I thought that I
did the right thing.

1035
00:50:54,677 --> 00:51:00,683
Good intentions will finally be
defeating evil. </ P>

1036
00:51:18,326 --> 00:51:21,078
What...
how much is mine? </ P>

1037
00:51:26,668 --> 00:51:27,627
Right. </ P>

1038
00:51:27,961 --> 00:51:29,086
Hmm.

1039
00:51:30,588 --> 00:51:32,799
Before Jon was exposed
as Alfred Little,

1040
00:51:33,090 --> 00:51:34,590
And thinking he was crazy.

1041
00:51:34,592 --> 00:51:35,802
Hey...

1042
00:51:36,218 --> 00:51:38,218
Now, along with
Carson, Matt, and Soren,

1043
00:51:38,220 --> 00:51:39,920
mereka adalah bagian dari
klan loose-knit.

1044
00:51:40,640 --> 00:51:43,540
Blank seller activists
eradicate fraud in China.

1045
00:51:44,477 --> 00:51:46,120
Most of them
are realists...

1046
00:51:46,187 --> 00:51:48,714
who believe the market will find
the truth itself.

1047
00:51:49,649 --> 00:51:50,817
And different.

1048
00:51:51,901 --> 00:51:53,286
He considers it
a personal matter.

1049
00:51:55,279 --> 00:51:57,991
Kun still visits psychologists
once in a week.

1050
00:51:59,951 --> 00:52:01,661
You did a good thing...

1051
00:52:03,496 --> 00:52:04,896
Don't just let it go.

1052
00:52:05,874 --> 00:52:07,625
Take care of him while he is there.

1053
00:52:09,752 --> 00:52:11,852
How many other people do we know
will leave him alone. </ P>

1054
00:52:12,755 --> 00:52:13,956
We owe him a lot. </ P>

1055
00:52:15,383 --> 00:52:17,052
His prison Kun changed And. </ P>

1056
00:52:17,844 --> 00:52:18,970
As far as we note,

1057
00:52:19,554 --> 00:52:22,015
it's not just
uncovering fraud again.

1058
00:52:22,974 --> 00:52:24,475
It's a matter of right or wrong.

1059
00:52:27,020 --> 00:52:28,312
His friend has been imprisoned,

1060
00:52:28,938 --> 00:52:30,481
and millions of people have been blackmailed.

1061
00:52:31,066 --> 00:52:32,567
He wants to intervene in the government,

1062
00:52:32,817 --> 00:52:34,217
even though he can make
himself...

1063
00:52:34,318 --> 00:52:35,862
and other sellers
leave the business. </ p >

1064
00:52:36,529 --> 00:52:39,032
So he hired a lobbyist
and planned...

1065
00:52:39,198 --> 00:52:40,575
attracted the attention of Congress.

1066
00:52:41,659 --> 00:52:44,453
Both Toomey and Casey,
were on the Senate Finance Committee.

1067
00:52:45,121 --> 00:52:46,622
- Mm-hmm.
- So I submitted...

1068
00:52:46,873 --> 00:52:48,290
the hearing of the Financial Senate.

1069
00:52:48,400 --> 00:52:50,400
You, you talked to the staff....
who attended...

1070
00:52:50,418 --> 00:52:52,128
meeting after meeting after
meeting after meeting.

1071
00:52:52,128 --> 00:52:54,228
So I thought many people
didn't know, this really happened...

1072
00:52:54,228 --> 00:52:55,928
Every person I talk to,
every person involved...

1073
00:52:55,928 --> 00:52:57,128
on the stock exchange, don't even know. </ p >

1074
00:52:57,128 --> 00:52:58,428
Lots of people don't know.

1075
00:52:58,428 --> 00:52:59,862
So this is the part that
is frustrating.

1076
00:52:59,862 --> 00:53:01,262
So in our first meeting
with Toomey's staff.

1077
00:53:02,430 --> 00:53:05,808
Hm, he, he actually recommended,
after one and a half hours,

1078
00:53:06,520 --> 00:53:08,021
- a campaign letter.
- Right.

1079
00:53:08,094 --> 00:53:11,013
First, you know,
welcome to 2016.

1080
00:53:11,773 --> 00:53:13,900
Hm, but my guess
like that can still work

1081
00:53:14,233 --> 00:53:16,527
Two, I for hours explain
to him,

1082
00:53:17,153 --> 00:53:19,154
that nobody knows
they are being blackmailed.

1083
00:53:19,321 --> 00:53:21,232
How am I can make
people write letters...

1084
00:53:21,323 --> 00:53:22,942
about things they don't
know is happening?

1085
00:53:22,951 --> 00:53:26,328
If we give up, you know what /> that happened outside Washington? Nothing. </ P>

1086
00:53:27,038 --> 00:53:28,238
You have to be
at his hearing. </ P>

1087
00:53:28,238 --> 00:53:29,238
You must consider
yourself as an expert. </ P>

1088
00:53:29,290 --> 00:53:30,291
That's why we < You have to go to Washington,

1089
00:53:30,499 --> 00:53:31,333
That's where we will
see the changes.

1090
00:53:34,629 --> 00:53:36,338
- That's very frustrating.
- Mm-hmm.

1091
00:53:36,672 --> 00:53:37,423
And I'm just...

1092
00:53:39,467 --> 00:53:41,427
don't want to hear
the world again.

1093
00:53:49,978 --> 00:53:50,979
And have a plan.

1094
00:53:55,316 --> 00:53:57,916
Still have a hearing with the Senate
well there is a danger from China or not...

1095
00:53:58,111 --> 00:53:59,946
for our economy.

1096
00:54:01,072 --> 00:54:03,992
He took the opportunity
to meet senator Toomey.

1097
00:54:04,450 --> 00:54:06,202
And make him
listen to his concerns.

1098
00:54:06,494 --> 00:54:07,662
Will you choose him
on that occasion?

1099
00:54:08,579 --> 00:54:10,289
- How do I choose?
- Oh, good, good.

1100
00:54:10,539 --> 00:54:12,416
I'm sorry, I'm sorry.
We chat casually...

1101
00:54:12,625 --> 00:54:13,626
and I forget.

1102
00:54:15,670 --> 00:54:17,546
Fine, let me say this,
I won't choose...

1103
00:54:17,713 --> 00:54:18,547
the banjo.

1104
00:54:32,728 --> 00:54:34,814
I think there are some
great people...

1105
00:54:35,148 --> 00:54:36,816
the work is just nonsense.

1106
00:54:37,483 --> 00:54:40,444
If you want to run a business
and you...

1107
00:54:40,695 --> 00:54:43,781
become a protector of
interests of citizens...

1108
00:54:45,200 --> 00:54:48,911
Citizens' rights,
you have to do your job.

1109
00:54:49,245 --> 00:54:50,079
Thank you, sir.

1110
00:54:51,330 --> 00:54:53,208
Or let someone else
who do, like that.

1111
00:55:14,020 --> 00:55:16,231
Today, the Committee will
listen to testimonials...

1112
00:55:16,564 --> 00:55:19,358
about the Chinese economy
and the risks to...

1113
00:55:19,650 --> 00:55:20,609
United States.

1114
00:55:21,527 --> 00:55:23,821
Some believe that the Chinese economy's
stimulus,

1115
00:55:24,072 --> 00:55:26,699
after the 2008 financial crisis,

1116
00:55:27,116 --> 00:55:28,910
has weighed on the financial system... .

1117
00:55:28,944 --> 00:55:31,396
with the percentage of debts
that are not normally high...

1118
00:55:32,288 --> 00:55:35,016
China does not transition, uh,
to a market economy.

1119
00:55:35,583 --> 00:55:37,618
They don't grow because of the commitments
made...

1120
00:55:37,668 --> 00:55:39,620
when joining
World Trade Organization.

1121
00:55:39,628 --> 00:55:41,463
The Chinese government appoints
their SOE,

1122
00:55:41,672 --> 00:55:43,216
which is also called SOE,

1123
00:55:43,632 --> 00:55:46,844
and oversee companies
privately, while limiting...

1124
00:55:46,900 --> 00:55:49,534
market access to the United States and
other foreign companies.

1125
00:55:49,597 --> 00:55:51,266
And hope that < br /> Senator Toomey...

1126
00:55:51,432 --> 00:55:53,392
will touch on some of the questions
he brought up with his staff.

1127
00:55:55,019 --> 00:55:56,145
But he left
the hearing earlier.

1128
00:55:57,688 --> 00:55:59,232
And things go downhill from there.

1129
00:56:00,024 --> 00:56:04,028
I'm not sure I can see this
as something to worry about.

1130
00:56:05,571 --> 00:56:07,489
What we need to worry more about,

1131
00:56:08,116 --> 00:56:11,535
is a continuation of
instability in China...

1132
00:56:11,994 --> 00:56:13,579
and what are the implications...

1133
00:56:20,753 --> 00:56:23,172
How fast is the economy of
China growing?

1134
00:56:23,798 --> 00:56:26,884
I don't know for sure. We don't have
reliable numbers. </ P>

1135
00:56:27,176 --> 00:56:28,261
You know, I really agree...

1136
00:56:28,469 --> 00:56:31,055
that China's growth is
not up to 6.7 percent. </ P>

1137
00:56:31,555 --> 00:56:33,682
Closer to the number,
is around 4 percent.

1138
00:56:34,267 --> 00:56:37,353
So if the Chinese credit
bubble breaks,

1139
00:56:38,187 --> 00:56:39,939
whether it's fast or slow,

1140
00:56:40,564 --> 00:56:43,192
bringing the Chinese economy down company...

1141
00:56:43,484 --> 00:56:46,612
- in the United States...
- So, so you're not worried...

1142
00:56:46,821 --> 00:56:50,491
about exposure through derivatives... </ p >

1143
00:56:50,741 --> 00:56:53,244
which, for example,
created our banks,

1144
00:56:53,535 --> 00:56:56,122
was fixated on the question
of commodity prices...

1145
00:56:56,331 --> 00:56:58,166
or financial transactions
Others are more direct?

1146
00:56:59,292 --> 00:57:02,628
Not through China alone...

1147
00:57:02,837 --> 00:57:05,006
atau transaksi finansial
lain lebih langsung?

1148
00:57:05,298 --> 00:57:07,675
Tidak melalui China sendiri ...

1149
00:57:15,016 --> 00:57:17,768
Me and David.
I'm sure Tom gave you my book.

1150
00:57:18,102 --> 00:57:19,145
- Oh, yeah.
- Yeah.

1151
00:57:19,395 --> 00:57:20,188
You will find it...

1152
00:57:20,355 --> 00:57:21,189
"The China Hustle."

1153
00:57:21,314 --> 00:57:23,065
Right. That's right. </ P>

1154
00:57:23,607 --> 00:57:24,984
If you, uh, read it
and you're interested,

1155
00:57:25,151 --> 00:57:26,819
I'm happy to talk about it
with you about that. </ P>

1156
00:57:26,986 --> 00:57:27,442
Alright .

1157
00:57:27,443 --> 00:57:29,243
So, a few hundred billion
are cheating,

1158
00:57:29,243 --> 00:57:30,143
and that continues.

1159
00:57:30,239 --> 00:57:31,949
It hasn't stopped yet. Lasts
continues every day. </ P>

1160
00:57:32,241 --> 00:57:33,450
- Good.
- Yes, some of them. </ P>

1161
00:57:36,996 --> 00:57:38,789
Very short and...

1162
00:57:39,123 --> 00:57:40,916
- Okay.
-... underestimate and generic. </ P>

1163
00:57:41,500 --> 00:57:42,868
- Not important.
- The only thing I...

1164
00:57:42,877 --> 00:57:44,879
heard in the end
is Shelby, saying,

1165
00:57:45,171 --> 00:57:46,830
you know, we have to
face reality.

1166
00:57:47,464 --> 00:57:49,024
- That's how it is.
- Okay, the truth is,

1167
00:57:49,091 --> 00:57:50,901
- they won't do anything.
- Right.

1168
00:57:51,719 --> 00:57:54,347
Most importantly, you know,
you must lose...

1169
00:57:54,847 --> 00:57:56,407
- if doing anything.
- That's right.

1170
00:58:01,770 --> 00:58:03,356
Uh, why did you come to Washington?

1171
00:58:04,523 --> 00:58:06,859
I was hoping that
could bring it forward,

1172
00:58:07,526 --> 00:58:08,986
p>

1173
00:58:09,278 --> 00:58:11,678
defending the rights of investors,

1174
00:58:12,614 --> 00:58:13,914
to... appear and see
what really happened...

1175
00:58:14,783 --> 00:58:16,283
at the committee hearing.

1176
00:58:16,952 --> 00:58:17,952
What happened
at hearings?

1177
00:58:23,792 --> 00:58:26,087
Not much.

1178
00:58:26,295 --> 00:58:30,507
I thought and tried...

1179
00:58:32,093 --> 00:58:34,511
invited Congress take action,
is a good thing.

1180
00:58:35,512 --> 00:58:36,513
Do I think that is the way
overcome the problem? No.

1181
00:58:38,766 --> 00:58:41,143
I don't think so. </ P>

1182
00:58:41,685 --> 00:58:43,145
All SEC staff have not captured,

1183
00:58:44,021 --> 00:58:46,023
A number of sellers have captured,

1184
00:58:46,232 --> 00:58:47,442
forty or fifty
from these cheats.

1185
00:58:58,535 --> 00:58:59,745
Coach, you want?

1186
00:59:00,162 --> 00:59:02,081
- Yes, I want.
- Does he still live in France? </ P>

1187
00:59:02,915 --> 00:59:04,583
Excuse me, ladies,
will I get something? </ P>

1188
00:59:05,000 --> 00:59:06,043
Soda, water, beer?

1189
00:59:07,420 --> 00:59:09,004
Pop, can you
get Sean beer?

1190
00:59:10,005 --> 00:59:11,924
No, he can take it himself.

1191
00:59:12,216 --> 00:59:13,008
He's big.

1192
00:59:13,384 --> 00:59:15,844
Uh-huh.

1193
00:59:16,220 --> 00:59:17,679
- Geo Investing.
- GO?

1194
00:59:18,139 --> 00:59:19,014
GEO.

1195
00:59:21,100 --> 00:59:22,643
I bet against them.

1196
00:59:22,935 --> 00:59:24,812
I will write a report,
and release it.

1197
00:59:25,562 --> 00:59:28,107
And I will say they are fraudsters
and I will sell it.

1198
00:59:29,275 --> 00:59:30,609
But when they drop,

1199
00:59:31,319 --> 00:59:34,029
I won, but you all lost.

1200
00:59:34,822 --> 00:59:35,739
We lost everything.

1201
00:59:36,698 --> 00:59:38,200
Initially good.
We didn't get...

1202
00:59:38,326 --> 00:59:40,495
This is a skim that comes from
from everyone's account.

1203
00:59:41,329 --> 00:59:42,497
That's the change from anyone...

1204
00:59:43,914 --> 00:59:46,083
it can reach hundreds of billions.

1205
00:59:46,959 --> 00:59:49,378
So you're campaigning
for something to happen.

1206
00:59:50,754 --> 00:59:52,381
So I won't make
money anymore.

1207
00:59:53,424 --> 00:59:54,633
- You're a good person, Danny.
- Yes. </ P>

1208
00:59:54,800 --> 00:59:55,968
I always think
you're always good. </ P>

1209
00:59:56,135 --> 00:59:57,594
It's impossible. </ P>

1210
00:59:57,761 --> 01:00:00,264
And I'm not a good person. No.
Just...

1211
01:00:01,140 --> 01:00:02,641
can't be silent, that's all

1212
01:00:03,892 --> 01:00:05,092
Explain to me again,

1213
01:00:05,092 --> 01:00:06,632
why did you make
money and we don't.

1214
01:00:06,645 --> 01:00:08,230
You bet against them.
It sells them.

1215
01:00:09,357 --> 01:00:10,358
Okay.

1216
01:00:12,067 --> 01:00:13,861
Graduated with 1.6...

1217
01:00:18,449 --> 01:00:20,075
- I'm kidding.
- There are two things here.

1218
01:00:20,242 --> 01:00:22,119
First, I don't know
really graduating.

1219
01:00:26,748 --> 01:00:27,749
Carol read...

1220
01:00:28,834 --> 01:00:31,504
Something happened
in China right now,

1221
01:00:31,712 --> 01:00:35,550
they found
which they thought were aliens.

1222
01:00:36,175 --> 01:00:37,676
Isn't that buried in, <br / > they found it?

1223
01:00:40,637 --> 01:00:41,847
Yes, it will be a small wrinkle.

1224
01:00:42,764 --> 01:00:44,850
That will make what I did
the last 3 years in vain.

1225
01:00:45,226 --> 01:00:46,435
It's OK. </ P>

1226
01:00:46,643 --> 01:00:48,563
- Thousands of years ago.
- Yes. </ P>

1227
01:00:49,480 --> 01:00:51,773
Yes, I don't think he will return
in full. </ P>

1228
01:01:00,741 --> 01:01:03,660
In the end, investors
who rely on SEC...

1229
01:01:04,579 --> 01:01:09,542
to save them from
lacking due diligence, or greed,

1230
01:01:10,000 --> 01:01:11,335
embarrass themselves .

1231
01:01:12,044 --> 01:01:14,255
We have more opportunities in our exchanges
than anywhere else in the world.

1232
01:01:14,713 --> 01:01:16,215
But, at the same time,

1233
01:01:16,840 --> 01:01:20,428
we don't have a regulator who
oversees our documentation,

1234
01:01:20,553 --> 01:01:22,721
and say, "We want to protect
people from this."

1235
01:01:24,223 --> 01:01:26,016
Our system... you know,
we send documents to the SEC,

1236
01:01:26,225 --> 01:01:27,935
and the SEC read the introduction,
and commented...

1237
01:01:28,143 --> 01:01:29,728
on, it was delivered.

1238
01:01:30,062 --> 01:01:31,522
They did not determine whether
was suitable for the public or not.

1239
01:01:31,730 --> 01:01:32,940
They don't make
that provision.

1240
01:01:33,148 --> 01:01:34,942
They leave the
free market decisive.

1241
01:01:36,235 --> 01:01:38,362
SEC must do its job.

1242
01:01:38,862 --> 01:01:40,948
Your job is to keep an eye on investors,

1243
01:01:41,156 --> 01:01:43,659
but you put the interests of
the Chamber of Commerce...

1244
01:01:43,867 --> 01:01:45,661
and their big business members
..

1245
01:01:46,120 --> 01:01:48,247
on your top priority list.

1246
01:01:49,373 --> 01:01:52,000
It is SEC's task to protect investors.

1247
01:01:52,627 --> 01:01:54,462
But it was registered in the 1930s,

1248
01:01:55,254 --> 01:01:57,465
at the time the stock price is rolling
on the old machine...

1249
01:01:58,132 --> 01:01:59,341
and exchanges are closed at 4 o'clock.

1250
01:02:00,384 --> 01:02:02,553
Now, they are losing weapons
and losing members,

1251
01:02:02,928 --> 01:02:05,640
like Keystone Cops chasing ships
<i > starship </ i> "Enterprise."

1252
01:02:06,599 --> 01:02:09,477
Even if the SEC gets
all requests...

1253
01:02:09,768 --> 01:02:11,019
from company documentation...

1254
01:02:11,270 --> 01:02:13,564
and they have enough evidence
to make it a case,

1255
01:02:13,855 --> 01:02:17,151
the Chinese people who are responsible for
this, don't really care.

1256
01:02:17,443 --> 01:02:18,819
When someone violates the law here ,

1257
01:02:19,069 --> 01:02:22,197
there is a process where they are accountable for accountability.

1258
01:02:22,615 --> 01:02:24,533
At some point
in a China-based company,

1259
01:02:24,908 --> 01:02:26,285
accountability is lost

1260
01:02:27,077 --> 01:02:28,663
Disappeared in the ocean.

1261
01:02:28,954 --> 01:02:31,332
This is one of the first things
ever said and told me.

1262
01:02:31,957 --> 01:02:34,960
In China, stealing from foreign investors < br /> is not illegal.

1263
01:02:37,129 --> 01:02:39,423
I don't believe the SEC allowed
companies...

1264
01:02:39,715 --> 01:02:42,134
to be listed on the United States exchange,
if there's no way...

1265
01:02:42,343 --> 01:02:43,552
policing them.

1266
01:02:44,345 --> 01:02:47,245
So I found an employee
China state financial news agency,

1267
01:02:47,431 --> 01:02:49,808
who wanted to take the risk
morphed the truth.

1268
01:02:51,810 --> 01:02:55,689
My name is Summer. I am an economic journalist
for state regulators. </ P>

1269
01:02:55,814 --> 01:02:59,985
If the company releases
false information about...

1270
01:03:00,151 --> 01:03:02,779
its financial statements are
on the United States exchanges,

1271
01:03:02,988 --> 01:03:06,241
China's local regulatory authorities...

1272
01:03:06,491 --> 01:03:10,370
do not have the authority
punish them.

1273
01:03:10,787 --> 01:03:13,039
I'm sure to be punished...

1274
01:03:13,164 --> 01:03:17,252
if you make fake products
in China, talk theory.

1275
01:03:17,377 --> 01:03:20,130
If I go abroad,
if I lie to foreign investors,

1276
01:03:20,255 --> 01:03:24,259
Chinese authorities don't can
do anything to me.

1277
01:03:30,015 --> 01:03:31,058
The outline is,

1278
01:03:31,475 --> 01:03:33,268
the Chinese government
and the United States government,

1279
01:03:33,602 --> 01:03:36,146
at a certain level,
does not work well together.

1280
01:03:38,399 --> 01:03:40,192
You can't force someone...

1281
01:03:40,901 --> 01:03:43,153
who has stolen millions of
for millions of dollars...

1282
01:03:43,820 --> 01:03:46,532
from American investors
come here from China.

1283
01:03:47,949 --> 01:03:49,660
You can't force them to testify.

1284
01:03:51,370 --> 01:03:52,829
You can't even
find them.

1285
01:03:53,914 --> 01:03:55,332
Forget about
ordinary people...

1286
01:03:55,499 --> 01:03:57,793
who thinks that their broker
or the SEC will protect them.

1287
01:03:58,753 --> 01:04:00,254
Even people like
Crocker Coulson,

1288
01:04:00,713 --> 01:04:03,131
who works on the system,
can't find...

1289
01:04:03,340 --> 01:04:05,551
what actually happened
with these Chinese companies.

1290
01:04:06,051 --> 01:04:07,428
You're in an alternative universe .

1291
01:04:07,678 --> 01:04:08,679
There is a kind of gunfight...

1292
01:04:08,929 --> 01:04:10,431
to do the simplest thing.

1293
01:04:10,681 --> 01:04:12,266
You can't even see
the bank's financial statements.

1294
01:04:12,474 --> 01:04:14,976
You can't even go
to the local bank and ask for it .

1295
01:04:15,436 --> 01:04:17,646
Often, managers from local banks,

1296
01:04:17,854 --> 01:04:20,232
will reprogram
bank bookkeeping...

1297
01:04:20,482 --> 01:04:23,282
make it look like the client's bookkeeping
they are better than them.

1298
01:04:24,570 --> 01:04:27,155
Every time there is a country
like China,

1299
01:04:27,406 --> 01:04:29,617
where information
is not easy to obtain,

1300
01:04:29,866 --> 01:04:33,870
Such a society
has a far greater risk.

1301
01:04:34,246 --> 01:04:36,665
In the United States, we can go
directly to a firm...

1302
01:04:36,873 --> 01:04:39,003
and we can get <br / > documents like that.

1303
01:04:39,042 --> 01:04:41,211
Looking for those documents
in China, it's really more difficult,

1304
01:04:41,503 --> 01:04:42,797
is not even possible.

1305
01:04:44,172 --> 01:04:46,592
If you want to be a criminal,

1306
01:04:47,050 --> 01:04:48,885
the possibility of the best place
to become a criminal...

1307
01:04:49,052 --> 01:04:52,347
is a place without police,
and that's China.

1308
01:04:52,598 --> 01:04:54,182
That is a wilderness > west (Wild West).

1309
01:05:32,971 --> 01:05:35,932
I've arrived.
I'm at the airport.

1310
01:05:36,851 --> 01:05:38,435
Just headed to the hotel.

1311
01:05:49,905 --> 01:05:52,115
And like Nicolas Cage < br /> in the movie...

1312
01:05:52,324 --> 01:05:55,118
where is he the only person
who knows the world will end.

1313
01:05:55,952 --> 01:05:58,288
He shouted it,
but nothing care.

1314
01:06:00,374 --> 01:06:03,960
Auditors, bankers,
Congress, SEC...

1315
01:06:05,587 --> 01:06:06,922
None of them saw
a financial tsunami...

1316
01:06:07,088 --> 01:06:08,965
what Dan saw came from China.

1317
01:06:10,801 --> 01:06:13,053
Then he decided to do
one thing he could do,

1318
01:06:13,804 --> 01:06:15,013
took the criminals' money.

1319
01:06:28,276 --> 01:06:30,487
Their funds have soared,

1320
01:06:31,071 --> 01:06:33,990
of 4.9 billion
four years ago...

1321
01:06:34,324 --> 01:06:36,993
reaches 6.5 billion today.

1322
01:06:37,369 --> 01:06:39,371
It was revealed that the only way
they could do...

1323
01:06:39,621 --> 01:06:41,039
to support the process of
their business,

1324
01:06:41,289 --> 01:06:42,708
is through delutive payments.

1325
01:06:48,672 --> 01:06:51,174
Normally, And releases
the report online.

1326
01:06:52,008 --> 01:06:53,008
But this time,

1327
01:06:53,008 --> 01:06:54,408
too much is
at stake,

1328
01:06:54,762 --> 01:06:57,681
companies worth nearly
2 billion dollars, Tech Pro.

1329
01:06:58,724 --> 01:06:59,934
He believes that
the leader of his company,

1330
01:07:00,100 --> 01:07:02,018
wrongly allocate funds...

1331
01:07:02,269 --> 01:07:03,604
cover up his personal projects.

1332
01:07:04,396 --> 01:07:06,774
If he can convince the market,
he can get the company out.

1333
01:07:07,357 --> 01:07:09,109
That would be the biggest
sale.

1334
01:07:10,193 --> 01:07:11,946
Now, I don't know what
others say,

1335
01:07:12,237 --> 01:07:13,948
but, something happened > here.

1336
01:07:15,073 --> 01:07:17,910
Our feasibility test,
lots of black smoke,

1337
01:07:18,452 --> 01:07:20,955
there is a lot of black smoke
from this company.

1338
01:07:21,371 --> 01:07:22,122
That's fire.

1339
01:07:24,750 --> 01:07:25,918
That needs to be checked.

1340
01:07:59,868 --> 01:08:01,870
♪ To change the world ♪

1341
01:08:02,370 --> 01:08:04,289
♪ I want to ♪

1342
01:08:04,581 --> 01:08:06,082
Join us
on the stock exchange now,

1343
01:08:06,374 --> 01:08:07,751
And David.
He is co-founder...

1344
01:08:07,960 --> 01:08:10,420
test-worthiness firm,
GeoInvesting.

1345
01:08:10,712 --> 01:08:13,047
And I see it,
You also take specialization in China?

1346
01:08:13,131 --> 01:08:15,133
Yeah right. My presentation
about Sohn in June...

1347
01:08:15,342 --> 01:08:18,136
for Tech Pro,
Tech Pro dropped 91 percent. </ P>

1348
01:08:18,470 --> 01:08:20,263
Do you need a good name recovery
when you see the stock...

1349
01:08:20,388 --> 01:08:22,223
- it drops like that?
- Yes, it's inevitable.

1350
01:08:22,516 --> 01:08:24,476
I... The stock will always drop.

1351
01:08:25,310 --> 01:08:27,938
Are you sure it's about China only
or just...

1352
01:08:32,275 --> 01:08:33,861
What is capitalism?

1353
01:08:36,864 --> 01:08:39,033
What is an economic system?

1354
01:08:39,533 --> 01:08:42,703
Is that an
tool that we can use...

1355
01:08:42,911 --> 01:08:46,331
to make a profit
more for yourself...

1356
01:08:46,355 --> 01:08:48,355
and take advantage <br / > from others?

1357
01:08:49,501 --> 01:08:53,547
Basically, it benefits them
who works hard,

1358
01:08:54,381 --> 01:08:57,092
but also benefits
those who want...

1359
01:08:57,384 --> 01:08:59,135
take advantage of
from others.

1360
01:09:02,059 --> 01:09:08,059
PUBLIC PENSION FUND LENYAP SENILAI
14 BILLION DOLLARS FROM CHINESE CHEAP REVERSE MERGER

1361
01:09:13,316 --> 01:09:14,985
When we describe <br / > fraud like this,

1362
01:09:15,819 --> 01:09:17,696
we use terms like
"white-collar crime"...

1363
01:09:17,946 --> 01:09:19,031
to distinguish them.

1364
01:09:22,242 --> 01:09:24,202
But actually, < br /> is a thief,

1365
01:09:25,245 --> 01:09:27,497
In the process, it was fleeting
robbed on the road.

1366
01:09:30,751 --> 01:09:33,253
It would be traumatic
if you traced his personal losses.

1367
01:09:35,589 --> 01:09:37,883
How many were stolen
of each pension fund,

1368
01:09:38,842 --> 01:09:39,634
severance funds,

1369
01:09:41,011 --> 01:09:42,054
of each of us.

1370
01:09:44,556 --> 01:09:47,601
The real story is
the amount of value.

1371
01:09:48,476 --> 01:09:52,147
These are the investors, in the end,
are mostly retail investors.

1372
01:09:52,439 --> 01:09:55,067
They are mostly just people
who play on the American stock exchange,

1373
01:09:55,692 --> 01:09:57,652
who pay attention financially
and trusting it.

1374
01:09:58,862 --> 01:10:00,864
The money is money...

1375
01:10:01,115 --> 01:10:03,784
ordinary investors...

1376
01:10:04,076 --> 01:10:07,955
who thinks, "Hey, I want take part
from the story of China's growth. "

1377
01:10:08,830 --> 01:10:10,832
And also those funds belong to...

1378
01:10:11,083 --> 01:10:12,626
mutual funds, like Vanguard,

1379
01:10:13,418 --> 01:10:16,504
who manages the funds for,
for example, The New York Times,

1380
01:10:16,964 --> 01:10:18,381
is it right?
Employees.

1381
01:10:18,966 --> 01:10:20,383
Money from my pension funds.

1382
01:10:21,384 --> 01:10:25,139
p>

1383
01:10:25,346 --> 01:10:27,808
We sell ourselves to Chinese myths...

1384
01:10:28,183 --> 01:10:30,644
as if an interesting market.

1385
01:10:30,811 --> 01:10:32,020
Nations that want
leveling effects ..

1386
01:10:34,148 --> 01:10:35,273
from free trade.

1387
01:10:35,565 --> 01:10:36,817
You should know better.

1388
01:10:37,109 --> 01:10:38,401
Yes, what will I pay for,

1389
01:10:38,568 --> 01:10:39,820
if I have funds in Fidelity,

1390
01:10:40,112 --> 01:10:41,155
isn't that...
why am I paying these people? </ P>

1391
01:10:41,362 --> 01:10:42,614
I don't know. I don't pay them. </ P>

1392
01:10:45,366 --> 01:10:47,368
I don't give them my money. </ P>

1393
01:10:47,744 --> 01:10:48,996
It's like a game from the orchestra,

1394
01:10:49,204 --> 01:10:50,956
when the music stops,

1395
01:10:51,372 --> 01:10:52,791
if You just have to hold the
music paper,

1396
01:10:53,374 --> 01:10:54,374
if you just hold
the funds,

1397
01:11:01,257 --> 01:11:03,135
Okay, hm, my name is David Yee,

1398
01:11:03,802 --> 01:11:05,095
and I live in Atlanta, Georgia.

1399
01:11:05,971 --> 01:11:07,472
My name is Ray Snader.

1400
01:11:07,889 --> 01:11:10,100
I'm a print and broadcast journalist....

1401
01:11:10,475 --> 01:11:12,435
in Newport, Tennessee.

1402
01:11:12,811 --> 01:11:16,439
Tom Snodgrass
from, uh, Spring, Texas.

1403
01:11:17,482 --> 01:11:19,693
What attracted me to stocks 
/> China registered in the United States,

1404
01:11:19,985 --> 01:11:21,111
is a high profit. </ P>

1405
01:11:21,402 --> 01:11:23,030
There is great turmoil
about them and...

1406
01:11:23,321 --> 01:11:24,239
a lot of attention.

1407
01:11:24,990 --> 01:11:28,869
I was expecting
a good retired deposit...

1408
01:11:29,077 --> 01:11:30,411
for my wife and myself.

1409
01:11:31,579 --> 01:11:34,833
I didn't get a funding plan
retired in my job.

1410
01:11:35,583 --> 01:11:38,419
I didn't get a fund plan
retired in my work.

1411
01:11:39,504 --> 01:11:43,050
Roth Capital, issued
purchase recommendations.

1412
01:11:43,800 --> 01:11:46,386
Company first one that really
caught my attention,

1413
01:11:46,636 --> 01:11:48,222
is AgFeed.
They are said...

1414
01:11:48,429 --> 01:11:51,349
as the largest
feed producer in China.

1415
01:11:52,308 --> 01:11:55,645
My last shares,
I bought,

1416
01:11:55,854 --> 01:11:57,397
only 9 dollars.

1417
01:12:01,442 --> 01:12:05,197
We got...
12 cents per share.

1418
01:12:06,031 --> 01:12:10,326
And, we were about 
> have a total of 26,000 shares.

1419
01:12:12,328 --> 01:12:14,581
What kind of loss did you receive, personally?

1420
01:12:15,874 --> 01:12:17,167
It's a number,

1421
01:12:17,667 --> 01:12:19,335
about 150,000 dollars.

1422
01:12:21,213 --> 01:12:25,092
I think I lost,
about 100,000 dollars.

1423
01:12:25,425 --> 01:12:27,635
My investment in these Chinese
companies,

1424
01:12:27,802 --> 01:12:30,513
represents the most not 50 percent
of my assets.

1425
01:12:31,139 --> 01:12:32,682
Prices are shaky,

1426
01:12:32,849 --> 01:12:37,187
and they end up,
out of the list and not traded. </ p >

1427
01:12:38,313 --> 01:12:41,108
- The value is empty.
- 0 dollars per share.

1428
01:12:41,233 --> 01:12:44,652
We believe in the market,

1429
01:12:45,153 --> 01:12:47,363
to the government to
monitor the market.

1430
01:12:47,614 --> 01:12:51,659
And I think, uh, we lose
in each transaction,

1431
01:12:52,160 --> 01:12:54,370
in certain transactions.

1432
01:12:56,414 --> 01:12:59,793
>

1433
01:13:02,003 --> 01:13:05,548
Roth Capital issued
purchase recommendations.

1434
01:13:05,882 --> 01:13:07,717
I'm not sure they ever
visited the factory in China.

1435
01:13:08,927 --> 01:13:13,223
The fact is, today, </ p >

1436
01:13:16,476 --> 01:13:19,395
I'm not sure there are
China Electric Motor companies.

1437
01:13:25,026 --> 01:13:26,320
- How old are you, Ray?
- I'm 68 years old.

1438
01:13:29,489 --> 01:13:30,782
So the money is gone where?

1439
01:13:31,032 --> 01:13:32,408
To bankers and lawyers,

1440
01:13:33,868 --> 01:13:36,288
who helped prepare
transaki.

1441
01:13:36,496 --> 01:13:37,831
And to the Chinese executives
who made millions...

1442
01:13:39,666 --> 01:13:40,792
while companies
they collapsed.

1443
01:13:41,417 --> 01:13:43,503
I don't know what's worse,

1444
01:13:44,296 --> 01:13:46,422
or brokers
on Wall Street can operate...

1445
01:13:46,631 --> 01:13:49,134
under the law, only doing
their work.

1446
01:13:50,635 --> 01:13:53,054
One side or another, most
of them escaped,

1447
01:13:53,388 --> 01:13:54,348
were free.

1448
01:13:55,056 --> 01:13:57,642
One exception,
namely Rodman & Renshaw.

1449
01:13:57,976 --> 01:13:59,394
There was a short time, General ?

1450
01:13:59,727 --> 01:14:00,895
No.

1451
01:14:01,229 --> 01:14:02,772
During the peak of the reverse-merger explosion,

1452
01:14:03,315 --> 01:14:05,317
they distributed
almost 18 million dollars...

1453
01:14:05,525 --> 01:14:07,218
as a bonus for
their executives.

1454
01:14:07,361 --> 01:14:09,103
But their problems were revealed.

1455
01:14:09,821 --> 01:14:10,897
In 2012,

1456
01:14:11,281 --> 01:14:13,408
they pay fines
315,000 dollars...

1457
01:14:13,908 --> 01:14:15,660
and submit their licenses
their brokers.

1458
01:14:16,536 --> 01:14:18,454
Immediately after that,
they are declared bankrupt.

1459
01:14:20,165 --> 01:14:21,416
<p p>

1460
01:14:21,708 --> 01:14:23,918
So I want
to make you understand.

1461
01:14:24,252 --> 01:14:25,712
- Right.
- Not Rodman & Renshaw.

1462
01:14:25,920 --> 01:14:27,547
- Right.
- I'm chairman of Rodman & Renshaw,

1463
01:14:27,714 --> 01:14:30,300
I'm not a banker at Rodman & Renshaw. </ P>

1464
01:14:30,550 --> 01:14:33,469
I'm not related to
financial transactions in China. </ P>

1465
01:14:34,221 --> 01:14:35,596
It's not me. </ P>

1466
01:14:35,972 --> 01:14:38,541
I told them,
"You have a problem with it." </ P>

1467
01:14:38,641 --> 01:14:41,311
I left the company,
uh, about a year,

1468
01:14:41,561 --> 01:14:43,188
18 months later, from the council. </ P>

1469
01:14:43,479 --> 01:14:46,733
My question is,
who did he tell? </ P>

1470
01:14:47,483 --> 01:14:49,527
What about, "Then
I went to Washington...

1471
01:14:49,903 --> 01:14:51,703
and met people <br / > I know...

1472
01:14:51,703 --> 01:14:52,803
when I campaign for the president...

1473
01:14:53,614 --> 01:14:55,409
and tell them
what happened "?

1474
01:14:55,533 --> 01:14:57,077
I don't seem to want
put in a movie.

1475
01:14:57,202 --> 01:15:00,955
I thought this was just...
wanted to attack me.

1476
01:15:01,248 --> 01:15:03,417
I don't need that.
I try to form a business.

1477
01:15:03,666 --> 01:15:06,169
I don't want to be attacked.
I didn't do anything wrong.

1478
01:15:06,336 --> 01:15:07,837
You are the leader board.
What kind of role is that?

1479
01:15:08,046 --> 01:15:09,381
A leader of
non-executive council?

1480
01:15:09,672 --> 01:15:11,049
Isn't he the one running the business,

1481
01:15:11,216 --> 01:15:12,842
or he really is there
as a leadership figure,

1482
01:15:13,218 --> 01:15:14,928
who lent his name
as credibility

1483
01:15:15,136 --> 01:15:16,054
of the situation?

1484
01:15:16,512 --> 01:15:17,513
I mean, that's the habit.

1485
01:15:18,390 --> 01:15:19,682
Like the Monica Lewinsky case.

1486
01:15:19,891 --> 01:15:21,684
Forget Monica Lewinsky.
No problem...

1487
01:15:21,851 --> 01:15:24,020
what did you say about that. < br /> That's a bad story.

1488
01:15:24,771 --> 01:15:26,606
So, let's just let it go
this session, okay?

1489
01:15:26,773 --> 01:15:28,483
- Sorry for wasting your time,
- Am I,

1490
01:15:28,691 --> 01:15:30,318
membuat malu masyarakat?

1491
01:15:31,278 --> 01:15:32,528
Did I say,
"You're not shameless...

1492
01:15:32,820 --> 01:15:34,364
for not asking
the right question?

1493
01:15:34,655 --> 01:15:36,908
The auditors are embarrassing 
for letting it get away?

1494
01:15:37,200 --> 01:15:38,743
The regulators are embarrassing
because they don't make...

1495
01:15:38,952 --> 01:15:41,162
the requirements tighter and harder "?

1496
01:15:41,746 --> 01:15:43,664
So, you think
there's no problem here? </ P>

1497
01:15:43,915 --> 01:15:46,000
Do you want to blame
one or someone about this? </ P>

1498
01:15:46,334 --> 01:15:47,252
Ridiculous. </ P>

1499
01:15:48,128 --> 01:15:50,588
That's ridiculous.
Everything... wrong. </ P>

1500
01:15:51,923 --> 01:15:53,174
Damaged. </ P>

1501
01:15:53,633 --> 01:15:55,635
Stop this.
This is a mistake for me. </ P>

1502
01:15:55,927 --> 01:15:57,553
This is one of the people who depend on me.

1503
01:15:57,762 --> 01:15:58,721
I have a firm.

1504
01:15:59,013 --> 01:16:00,474
I have people
who work for me.

1505
01:16:00,974 --> 01:16:04,185
I owe my best chance 
/> to provide their livelihood.

1506
01:16:04,685 --> 01:16:06,771
And, this doesn't help.
This hurts.

1507
01:16:07,272 --> 01:16:08,564
So I just go out.

1508
01:16:10,066 --> 01:16:10,984
Yes, I'm not...

1509
01:16:11,692 --> 01:16:13,445
This is not a part to
attack you, sir.

1510
01:16:13,611 --> 01:16:14,988
This isn't help...

1511
01:16:15,196 --> 01:16:16,906
That's not it, it's not my intention,
nor is it...

1512
01:16:17,073 --> 01:16:19,326
Uh, I thought I could do this
academically,

1513
01:16:19,493 --> 01:16:21,328
but I realize I can't.

1514
01:16:22,203 --> 01:16:23,079
Do you know? I...

1515
01:16:26,791 --> 01:16:28,835
China is fundamentally...

1516
01:16:29,669 --> 01:16:32,464
the social system that is
damaged or chaotic. </ P>

1517
01:16:32,713 --> 01:16:34,132
The community that reaches the top,

1518
01:16:34,674 --> 01:16:37,511
>

1519
01:16:38,219 --> 01:16:40,305
reach it by breaking the rules.

1520
01:16:40,847 --> 01:16:42,849
Good people who want to
follow the rules,

1521
01:16:43,141 --> 01:16:45,185
are trampled and pushed
to fall to the bottom of the pile.

1522
01:16:45,352 --> 01:16:46,811
This, in some ways,
has nothing to do with China.

1523
01:16:46,978 --> 01:16:48,062
If you give
the incentive structure...

1524
01:16:48,604 --> 01:16:50,606
oh my goodness, we find the same amount of
cheating here.

1525
01:16:51,607 --> 01:16:53,485
It's an easy thing
for them.

1526
01:16:53,860 --> 01:16:56,196
Bull against a bear,
Constantly.

1527
01:16:57,155 --> 01:16:58,906
And now because
I trust the bear,

1528
01:17:00,033 --> 01:17:02,494
I don't know whether
can return to the bull. </ p >

1529
01:17:07,874 --> 01:17:09,625
But, no regrets work
for them.

1530
01:17:10,835 --> 01:17:12,920
My clients make money.

1531
01:17:15,881 --> 01:17:17,299
The community loses.

1532
01:17:17,758 --> 01:17:19,343
I think this is happening anywhere
in the world.

1533
01:17:19,677 --> 01:17:21,387
But that's all, in China,

1534
01:17:21,679 --> 01:17:25,224
everything is due to multiple times
.

1535
01:17:25,558 --> 01:17:27,810
You know.
You have 1.3 billion people. </ P>

1536
01:17:28,018 --> 01:17:29,603
I mean, the consequences are huge. </ P>

1537
01:17:30,480 --> 01:17:32,065
We never saw
credit formed...

1538
01:17:32,357 --> 01:17:34,192
like what happened in China
right now,

1539
01:17:34,484 --> 01:17:38,363
which was not followed by,
a great monetary crisis.

1540
01:17:38,905 --> 01:17:40,198
So, stay here.

1541
01:17:41,491 --> 01:17:43,618
We, we have, so far,
the most active market...

1542
01:17:43,784 --> 01:17:44,911
in this world. So far! </ P>

1543
01:17:45,912 --> 01:17:48,748
So, that freedom, leaving
those decisions...

1544
01:17:48,915 --> 01:17:50,875
to the private sector, you know,

1545
01:17:51,125 --> 01:17:53,461
, that opens a lot,
lots of capital.

1546
01:17:53,711 --> 01:17:55,255
This is financial crime...

1547
01:17:55,505 --> 01:17:58,132
in the last 25 years, with
the exception of Bernie Madoff. </ p >

1548
01:17:58,633 --> 01:18:02,136
It's still too easy for
bad guys in the economy...

1549
01:18:02,470 --> 01:18:04,055
avoid Washington.

1550
01:18:05,181 --> 01:18:06,766
We cut regulations.

1551
01:18:07,058 --> 01:18:09,852
I said 70 percent of the regulations
could not be used. </ P>

1552
01:18:11,479 --> 01:18:13,981
I thought you saw a lot in common with
mortgage crisis...

1553
01:18:14,232 --> 01:18:17,110
in, in 2008 and the situation in China...

1554
01:18:17,444 --> 01:18:20,238
We already have a chance,
after the global financial crisis,

1555
01:18:20,405 --> 01:18:22,156
my opinion,
and we missed it.

1556
01:18:22,365 --> 01:18:24,825
It's like an appetizer,

1557
01:18:25,034 --> 01:18:27,703
at, those little
garbage companies,

1558
01:18:27,954 --> 01:18:29,956
who, often,
demonstrates cheating.

1559
01:18:30,248 --> 01:18:31,874
We count 50 billion dollars,

1560
01:18:32,166 --> 01:18:33,751
and it's like an empirical number.

1561
01:18:34,294 --> 01:18:36,337
That's the amount we can
say, "Boom."

1562
01:18:36,796 --> 01:18:39,299
We can conclude
and cheat it...

1563
01:18:39,466 --> 01:18:41,342
and hide it.

1564
01:18:42,093 --> 01:18:44,304
we're not talking...

1565
01:18:45,054 --> 01:18:47,932
that there are hundreds of billions of dollars...

1566
01:18:48,266 --> 01:18:50,184
that we can't even touch.

1567
01:18:51,060 --> 01:18:52,853
And cheating that
can done...

1568
01:18:53,729 --> 01:18:55,773
through China with other intentions.

1569
01:18:56,524 --> 01:18:57,775
So it's not 50 billion dollars,

1570
01:18:58,192 --> 01:19:00,194
and not some investment banks,

1571
01:19:00,695 --> 01:19:02,822
and not some people
in the United States.

1572
01:19:03,823 --> 01:19:06,826
Itu semua orang. Semua bank.

1573
01:19:15,251 --> 01:19:16,461
Do they know or not.

1574
01:19:18,087 --> 01:19:21,287
Giant e-commerce company
from China, Alibaba,

1575
01:19:21,287 --> 01:19:23,287
made a Wall Street uproar today.

1576
01:19:23,593 --> 01:19:24,670
The company...

1577
01:19:24,670 --> 01:19:26,547
took off its first general
offer...

1578
01:19:26,547 --> 01:19:27,564
on the New York Stock Exchange. </ P>

1579
01:19:27,564 --> 01:19:29,416
The stock price jumped <br / > 38 percent...

1580
01:19:29,849 --> 01:19:30,891
That is a perfect storm. </ P>

1581
01:19:33,102 --> 01:19:34,479
That is a perfect storm. </ P>

1582
01:19:34,604 --> 01:19:37,106
Yes, eBay and Amazon
and PayPal are quite easy ,

1583
01:19:37,357 --> 01:19:39,317
but this is Netflix; this is Groupon...

1584
01:19:39,651 --> 01:19:41,027
I mean, it's a perfect storm.

1585
01:19:41,235 --> 01:19:43,697
That is the first time
the main internet company from China...

1586
01:19:43,863 --> 01:19:45,615
has gone public in the United States.

1587
01:19:48,868 --> 01:19:50,995
Uh, there's an old joke that
the biggest lie on Wall Street,

1588
01:19:51,746 --> 01:19:53,623
is that right now,
is different.

1589
01:19:53,831 --> 01:19:55,709
Advantages of Alibaba in the second quarter,

1590
01:19:55,875 --> 01:19:59,128
jumped by around 179 percent
to 2 billion dollars.

1591
01:19:59,546 --> 01:20:00,672
That was a perfect storm.

1592
01:20:01,506 --> 01:20:02,923
That's the truth.

1593
01:20:03,132 --> 01:20:05,468
You don't need to be smart < br /> to really look for it.

1594
01:20:05,719 --> 01:20:07,220
You're like buying a lottery ticket.

1595
01:20:07,803 --> 01:20:09,764
Alibaba is a lottery ticket.

1596
01:20:10,724 --> 01:20:13,017
Charismatic Founder, Jack Ma, 
appear...

1597
01:20:13,142 --> 01:20:14,602
challenge some technology icons.

1598
01:20:14,810 --> 01:20:17,271
Should we join and
buy Alibaba shares?

1599
01:20:17,564 --> 01:20:18,939
Yes, this is China.

1600
01:20:19,106 --> 01:20:20,900
Is there something that stands out...

1601
01:20:21,067 --> 01:20:24,571
which is worse than this?
I, I, can make that argument.

1602
01:20:25,196 --> 01:20:27,114
That is Jack Ma ,
meet with the president.

1603
01:20:27,657 --> 01:20:29,033
Jack and I, will do...

1604
01:20:29,325 --> 01:20:30,326
- great things.
- Small business.

1605
01:20:30,577 --> 01:20:31,827
- Thank you, Jack.
- Thank you, sir.

1606
01:20:33,454 --> 01:20:37,250
The CEO of Alibaba, Jack Ma, said,
"Just trust us, just believe."

1607
01:20:37,625 --> 01:20:40,169
In this country, when someone says,

1608
01:20:40,336 --> 01:20:42,338
"Trust just to us, "
the first thing you do is,

1609
01:20:42,838 --> 01:20:43,964
take care of your wallet.

1610
01:20:44,465 --> 01:20:45,966
Don't trust anyone,

1611
01:20:46,342 --> 01:20:49,142
and don't believe anything
You can't see and check it yourself.

1612
01:20:50,346 --> 01:20:51,806
And that applies to Alibaba too.

1613
01:20:55,476 --> 01:20:57,853
- So why do you still do it?
- Fuck them.

1614
01:21:00,231 --> 01:21:01,323
They lie.

1615
01:21:09,000 --> 01:21:12,000
Roth Capital Partners Still
Organize an Investment Conference.

1616
01:21:12,000 --> 01:21:14,500
Loeb & Loeb Are One of Their Sponsors.

1617
01:21:22,000 --> 01:21:26,000
Setelah Mengajukan Kebangkrutan, Rodman Merger
Dengan Kompetitor Dan Masuk Kembali ke Bisnis Bank Investasi.

1618
01:21:44,000 --> 01:21:48,000
Carson Block Still Running Muddy Waters.
He Becomes One of the Most Successful Blank Sellers in America

1619
01:21:48,000 --> 01:21:52,000
Matt and Soren Continue to Sell Empty Cheaters

1620
01:21:55,000 --> 01:21:57,500
Since 2004, Wesley Clark has joined
a board of at least 18 public companies.

1621
01:21:57,500 --> 01:22:00,500
He continues to speak at conferences -
Investment Conference. </ p >

1622
01:22:01,000 --> 01:22:03,000
Jon and Kun continue to work together.

1623
01:22:05,000 --> 01:22:09,000
Kun in the middle of a lawsuit against Silvercorp,
Seeks Compensation as a result of Wrong punishment against him. And Urgent Campaign in Washington.

1624
01:22:10,000 --> 01:22:14,000
Dan Terus Berinvestasi Pendek,
Dan Mendesak Kampanyenya di Washington.

1625
01:22:19,000 --> 01:22:22,500
Dari Perkiraan 400 Perusahaan China Yang Masuk
Bursa Selama Ledakan Reverse Merger,
Hanya Satu PET Yang Masuk Penjara.

1626
01:22:26,000 --> 01:22:29,000
Di 2016, SEC Memulai Investigasi
Praktek Akuntansi Alibaba.

1627
01:22:29,000 --> 01:22:33,000
In 2017, President Trump Appointed Jay Clayton,
Who Works as a Lawyer in Alibaba's IPO, To Chair the SEC.

1628
01:22:38,000 --> 01:22:40,600
Today, More Than 100 Chinese Companies
Trade on the Exchange United States securities. </ P>

1629
01:22:40,600 --> 01:22:42,600
Nilai Pasar Gabungan Mereka Lebih Dari
1.1 Trilyun Dollar.