Renren Investors Wake Up!

In the recent frauds in the Chinese reverse takeover (RTO) stocks investors suddenly realize that they can't sue the Chinese companies' management. Many times they don't even know if they are US or Chinese citizens, or which laws apply.

Let's look at recent Renren IPO, touted as Chinese Facebook, based on its S-1,
several risks show up

1. Joseph Yizhou Chen was at Oak Pacific Interactive backed by Softbank Japan, why change to Renren?
2. RENN stock holders' ownership is 13.4%, but voting power only 3.3%. American investors shut up?
3. For foreign capitals, it is much easy to move money into China than to take from China.  Ask Mr Chen if and when there will be a cash dividend. Milk American cash cow.
4. Joseph Yizhou Chen 陈一舟, is an American citizen and can't register websites such as Qianxiang Tiancheng (Thousand Oaks) by himself. The founder doesn't own the websites. Emperor's new clothes, sue Mr Chen in the US?
5. Derek Palaschuk was to be appointed then suddenly resigned before Renren's IPO. Derek Palaschuk is involved in the fraud of Longtop Financial Technologies. per its S-1 "Mr. Derek Palaschuk will serve as our independent director upon the SEC’s declaration of effectiveness of our registration statement"
6. Chen owned stock of Elong through Oak Pacific Interactive, you know what, also from S-1", Mr. Palaschuk has served as the chief financial officer of Longtop Financial Technologies Limited, a China-based NYSE-listed company, since September 2006. Prior to this, Mr. Palaschuk served as chief financial officer of eLong Inc," SOHU as well. Self dealing?
7. Renren's auditor is Deloitte Touche Tohmatsu CPA Ltd. Fraud Longtop Financial Technologies also shared Deloitte as its auditor.
8. Fudged the registered user number at Renren websites. Illusion. Because those internet companies have negative or small profit to report, then Wall Street analysts invented some other criteria to measure company's success.
9. SB Pan Pacific, part of Softbank Japan, an investor in Renren, has a very bad meaning in Chinese for SB. SB means 傻逼,傻B in Chinese, "dumb ass" in English.

Conclusion:

I can't say Renren stock offering is a fraud, but it certainly fits all the fraud patterns.