SinoTech Energy Shares
McCabe Rabin, P.A. Investigating Possible Misconduct In Connection With Sales of SinoTech Energy Limited Shares
The law office of McCabe Rabin, P.A. is investigating claims on behalf of investors regarding possible misconduct in connection with the offering of American Depository Shares of SinoTech Energy Limited (NASDAQ symbol: CTE). According to the registration statement and other offering documents filed with the Securities and Exchange Commission (SEC), SinoTech purports to be a leading non-state owned provider of enhanced oil recovery services to major oil and gas fields in China.
Subsequent to SinoTech’s initial public offering on November 3, 2010, it was reported that SinoTech’s financial statements were false. An August 16, 2011 report of an investigation conducted by a research firm revealed that SinoTech, its sole import agent, chemical supplier and five largest customers appeared to be empty shell companies with little or no sales or income. The report also stated that SinoTech’s financials on file with the Chinese government were materially different from those filed with the SEC. Following publication of the report, the value of the shares dropped from $8.50 to $2.35 and NASDAQ halted trading of SinoTech’s shares.
UBS AG, Citigroup Global Markets, Inc. and Lazard Capital Markets, LLC were the underwriters for SinoTech’s initial public offering. It is believed that UBS and Citigroup then sold millions of dollars of SinoTech shares to their customers. Prior to underwriting and selling the shares, UBS and Citigroup were required to perform due diligence on SinoTech to confirm the accuracy of the assertions contained in SinoTech’s financial statements and offering documents. UBS and Citigroup’s failure to detect the alleged fraud by SinoTech could subject the firms to liability for the losses suffered by SinoTech’s investors.
Investors nationwide who suffered losses in SinoTech Energy Limited shares purchased from UBS, Citigroup or any other brokerage firm, may contact McCabe Rabin, P.A for a review of their potential claim.
McCabe Rabin, P.A.
Ryon M. McCabe, Esq.
1601 Forum Place, Suite 301
West Palm Beach, Florida 33401
Toll Free (877) 915-4040