The fraud that is Alibaba IPO, in spite of some of our efforts, is now upon us . Alert citizens like you have lent their voices, raising serious concerns and questions, a lot of them posed publicly in the most respected publications of America.
Act Now – You can still Stop the Madness!!
Act Now – You can still Stop the Madness!!
Here is the skinny on what’s transpiring:
What Alibaba got:
- Alibaba gets our money
- Alibaba gets access to American markets
- Alibaba gets access to American technology
What we, main street America, continue to get:
- No accountability
- No transparency
- No respect for our laws
and.. this added bonus:
- Fund our own demise
It’s sheer madness!
Act Now – You can still Stop the Madness!!
Act Now – You can still Stop the Madness!!
Concerned citizens have been complaining in droves to the SEC, urging it to stop this ongoing fraud.
Here is one that’s illustrative:
Dear SEC:
This complaint brings to your attention grave concerns about shareholder rights for potential owners of publicly traded stock in the upcoming IPO of Alibaba Group. Further, this complaint also urges the SEC to take all necessary actions to ensure said concerns are addressed properly and transparently.
Dim transparency and non-existent rights
Consider the following public reports on Alibaba:
“Chinese Businesses Like Alibaba Face Trust Gap
Lack of transparency, past stock overvaluation crisis in Hong Kong should make Wall Street wary.”
– US News, May 16, 2014
“… and there is a distinct possibility that rather than pay out profits to investors, the profits could be directed to their Alipay subsidiary, and this subsidiary could be sold at a sweetheart price to the managers. And, since Alibaba operates in China, and not the U.S., there is little that U.S. investors could do about this potential theft of assets if it were to happen.”
– Forbes, May 8, 2014
“..The reliability of economic data from the Chinese government has in the past been scrutinized by financial firms, including Goldman Sachs and UBS, out of suspicion that its officials are either struggling to develop accurate statistic methods or are stretching the truth without fear of accountability in a nation that stifles free speech and criticism of authorities.
In addition to a lack of transparency, the company openly acknowledges stock holders would have little recourse in the event of malfeasance. The company intends to sell stock on Wall Street instead of in Hong Kong to give its corporate executives greater control of the company. Alibaba did not specify what exchange it would trade on in its filing, but warned that investors unhappy with the company might be unable to sue its officers.”
–US News, May 16, 2014
And, finally, here is a telling statement in Alibaba’s own filing:
“..You may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. federal courts may be limited because we are incorporated under Cayman Islands law, we conduct substantially all of our operations in China and most of our directors and all of our executive officers reside outside the U.S.”
History of bad faith and credit
Alibaba group and its Executive chairman Jack Yun Ma have shown a chilling disregard for U.S shareholder rights and have established a history of bad faith and credit with their U.S shareholders. Using the same “Variable Interest Entity” structure that is proposed in the Alibaba F-1, Alibaba and Mr. Ma have successfully swindled at least one major shareholder out of its equity:
“.. Jack Ma, the driving force behind the e-commerce giant, put together a VIE structure in order to entice Yahoo! into taking up a large minority stake in Alibaba in 2005. In a two-stage transaction in 2009 and 2010, he transferred Alipay, Alibaba’s increasingly valuable online payment arm, to an entity in which he had a substantial interest, all without informing the Sunnyvale, California company. When Yahoo! learned of the surreptitious transfers, Ma defended the moves by stating that the People’s Bank of China, China’s central bank, had demanded them in order to obtain a necessary license. In essence, Ma argued Alipay could not operate its business because of the VIE arrangement he himself had put together…”
-Forbes, May 11, 2014
There is a very real concern that potential shareholders will be left with nothing but a worthless piece of paper if the situation is not addressed.
American investors deserve better than this. Our capital markets can do better than this. I urge the SEC to suspend or block the public offering of Alibaba until transparency can be established in full accordance with American values – the spirit and letter of our laws. I urge the SEC to suspend or block the public offering of Alibaba until full shareholder rights can be reestablished in a way that promotes American values.
Sincerely,
Jack Ma and his commie benefactors are chomping at the bit. We can stop this.
Before any more hardworking Americans are hurt – Let’s stop the madness!
CitizennP 
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