Trading of stock suspended, bank accounts frozen, directors resigning, executives suspended... Some Mondays really are worse than others and Weida Communications just had a reeealy bad one.

Via TMCNet.com:

Weida Communications to Cooperate with SEC Investigation of CFO and Stockholder in Connection with Other Activities; Company Announces Board of Directors Resignations

April 25, 2005

Weida Communications, Inc., a U.S. managed telecommunications operator in China, stated that the SEC is investigating whether Joseph Zumwalt, chief financial officer of Weida, and Anthony Giordano, one of Weida's largest stockholders, engaged in alleged illegal activities in connection with an independent investment entity that they were involved with, which is also a stockholder of Weida.

As a result of the investigation, the SEC temporarily suspended trading of Weida's securities. This suspension is expected to expire on May 6, 2005 at 11:59 p.m. EDT and trading of Weida is expected to resume on May 7, 2005. The SEC also froze Weida's bank accounts. Additionally, the SEC has not provided any specific information with respect to the charges against Mr. Zumwalt or Mr. Giordano, or its actions with respect to Weida. At this time, no charges have been asserted against Weida.

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Labels: China