Global InformationChina Medical Technologies information
 | |
| Company type | Public |
|---|---|
| Industry | Medical technology |
| Predecessor | Beijing Yuande Bio-Medical Engineering Co., Ltd., or YDME Beijing[1] |
| Founded | July 2004 in Cayman Islands[1] |
| Headquarters | No. 24 Yong Chang North Road, Beijing Economic and Technological Development Area, Beijing , People's Republic of China |
Key people | Wu Xiaodong, Chairman & CEO; Tak Yung Samson Tsang, CFO |
| Products | Medical devices |
| Revenue | CNY 842 million  [1] (FY 2011) |
Operating income | CNY 249 million[1] (FY 2011) |
Net income | CNY 82 million[1] (FY 2011) |
| Total assets | CNY 4.948 billion[1] (FY 2011) |
Number of employees | 971 (31 March 2011)[1] |
| Website | www.chinameditech.com (Archived) |
China Medical Technologies, Inc. (CMED) was a Cayman Islands corporation based in China, currently in liquidation following fraud allegations. It purported to develop, manufacture, and market advanced in vitro diagnostic ("IVD") products using enhanced chemiluminescence ("ECLIA") technology, fluorescent in-situ hybridization ("FISH") technology, and surface plasmon resonance (“SPR”) technology to detect and monitor various diseases and disorders.[2][3]
CMED ceased operating in early 2012, leaving investors unpaid on $426 million worth of bond debt as a result of a suspected fraud by CMED's former Chairman & CEO. The company is in default due to failure to pay interest to its bondholders.[4] CMED filed for bankruptcy in 2012, and its liquidator is probing an alleged $355 million insider fraud, and alleges that "CMED's creditors and equity holders may have been the victims of a massive multi-year fraud."
In February 2012, the company's shares in the United States moved from the NASDAQ to the pink sheets.[5] In March 2012, the CMED American depositary shares (ADSs) were delisted from NASDAQ, and in June 2012 the CMED ordinary shares were deregistered. Since July 2012, pursuant to an Order by the Grand Court of the Cayman Islands, CMED has been under the control of Joint Official Liquidators. In August 2012, the company filed for bankruptcy under the U.S. Bankruptcy Code. In November 2012, the US Securities and Exchange Commission revoked the registration of the CMED registered securities.
In 2009, an anonymous letter alleging possible illegal and fraudulent activities by management since 2007 was sent to KPMG Hong Kong, then CMED's auditor. The CMED Audit Committee retained law firm Paul Weiss Rifkind Wharton & Garrison, which in 2009 investigated the allegations and advised the committee as to any appropriate further measures. In September 2015, U.S. District Judge Ronnie Abrams of the US District Court for the Southern District of New York held that Paul Weiss-despite its refusal-must give CMED's liquidator, who was scrutinizing the alleged $355 million fraud, otherwise-privileged information concerning Paul Weiss's internal investigation.
In January 2012, a class action fraud lawsuit was filed by CMED investors against CMED and its CEO and CFO in the US District Court for the Southern District of New York. In July 2012, original purchasers of the CMED bonds sued the CEO in a civil case in California, alleging he stripped assets from CMED. In November 2012, the liquidator filed a complaint with the Hong Kong Police Force and the US Federal Bureau of Investigation (FBI), alleging that $400 million that CMED raised in stock and bond sales has gone missing, and that the CEO's wife had gambled substantial sums at the Wynn and Bellagio casinos in Las Vegas, Nevada. In March 2017, the U.S. Department of Justice in Brooklyn, New York, criminally indicted CMED's founder and CEO, as well as CMED's former Chief Financial Officer, charging them with securities fraud and wire fraud conspiracy for stealing more than $400 million from investors as part of a seven-year scheme. In November 2017, several partners of KPMG, CMED's auditor from 2003 to 2008, faced contempt proceedings in Hong Kong High Court with regard to KPMG's refusal honor a February 2016 court order to produce Chinese working papers to the liquidators.
- ^ a b c d e f g Cite error: The named reference
20fwas invoked but never defined (see the help page). - ^ "China Medical Technologies". chinameditech.com. Archived from the original on 24 January 2010. Retrieved 6 April 2010.
- ^ In the Matter of China Medical Technologies, Inc., Order, 11 October 2012, SEC.gov.
- ^ 数库 - 深度聚焦中国的金融数据与分析平台, ChinaScope.
- ^ "CMED Stock Quote - Price," Nasdaq.