Washington, Jan 10: The Chinese Government has snubbed the U.S. request for help in cracking down on a number of alleged investment frauds that have cost Americans billions, outgoing Securities and Exchange Commission Chairman Mary Schapiro has said.
Schapiro told ABC News that the lack of cooperation has blocked efforts to recoup investor losses, in one of the largest sprees of alleged financial crimes that has gone largely unnoticed by most Americans.
She said that the consequence is it’s very much more difficult for them to prove their cases.
According to the report, more than 100 China-based companies have now been de-listed, have left the NASDAQ and New York stock exchanges, have been denied listing, or have withdrawn applications, all following allegations of fraud or accounting irregularities.
Not every Chinese company was implicated, many continue to thrive.
But experts estimate that Americans, everyone from small investors to hedge-fund titans, have lost tens of billions of dollars in the suspect Chinese investments, the report said.
Prosecutors in the Bernie Madoff case calculated that his investors lost about 20 billion dollars in his decades-long Ponzi scheme, the report added. (ANI)