Wohl & Fruchter LLP Announces Investigation of Financial Misconduct at Jiangbo Pharmaceuticals, Inc. (Formerly known as Genesis Pharmaceuticals Enterprises, Inc.)
Published: Jun 27, 2011
Trading in Jiangbo’s common stock on The Nasdaq Global Market was halted on May 31, 2011.
According to a Form 8-K issued by Jiangbo on June 7, 2011, the independent members of Jiangbo’s audit committee announced their immediate resignations on June 6, 2011.
In a letter dated June 6, 2011, the audit committee members disclosed that Jiangbo had received a subpoena from the U.S. Securities and Exchange Commission on March 26, 2011, and that the audit committee had initiated an independent investigation in response, assisted by the law firm of Cadwalader, Wichersham & Taft (Cadwalader) and by Ernst & Young (China) Advisory Limited (E&Y).
The audit committee’s June 6 letter further disclosed that its independent members had made the decision to resign based on management’s “clear and continuing lack of cooperation” with their investigation, and further cited the manner and timing of the company’s payments to Cadwalader and E&Y as raising “additional serious concerns regarding the veracity or correctness of banking information provided by” Jiangbo’s management. Accordingly, the audit committee determined that it could no longer effectively conduct its investigation, and reported that Cadwalader and E&Y had withdrawn from their respective engagements.
Additional information is available at www.wohlfruchter.com/cases/jgbo.
Persons with relevant information, and shareholders with questions about this investigation, are invited to contact our Firm.
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