Kingold Jewelry Probed for Alleged Fake Gold Use

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Kingold Jewelry Probed for Alleged Fake Gold Use

Postby PinkDiamond » Sat Aug 01, 2020 5:31 pm

Here's more on the Kingold lawsuit due to them passing off a copper alloy covered in gold as collateral for bank loans. The original story was posted here on July 2nd, and this is the latest on it from JCK. Again I say it's hard to believe that they would think they could get away with this, but they obviously did, and it's ironic that they thought they could conceal it much like the Chinese thought they could conceal the Wuhan flu that has caused so much chaos throughout the world with the ensuing pandemic, forcing us to ask if there's anything they say that we can believe. I'll watch for any further news since we definitely want to see a conviction in this case. :?

Kingold Jewelry Probed for Alleged Fake Gold Use
July 31, 2020 by Rob Bates

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"Kingold Jewelry, the Wuhan, China–based jewelry manufacturer that is publicly listed in on Nasdaq, faces a local investigation over its alleged use of a “gilded copper alloy” disguised as gold as collateral for bank loans, it announced in an 8-K filed on July 14 with the Securities and Exchange Commission.

The allegations were first brought to light in the local publication Caixin.

The company, which primarily sells jewelry to the domestic market, also announced that its bank accounts have been frozen in connection with various legal proceedings.

Those proceedings include a lawsuit from Anxin Trust Co., filed in February, which claims it is owed approximately RMB 2.3 billion (approximately $330 million). In addition, on July 1, the Bank of Zhangjiakou sent company affiliate Wuhan Kingold Jewelry a notice claiming it was in default of its loan obligations.

The Caixin report alleged that Kingold used “gilded copper” disguised as gold as collateral to obtain $2 billion in loans from banks.

Company chair Jia Zhihong denied the story to the publication.

“How could it be fake if insurance companies agreed to cover it?” he said, according to the news service.

The company had initially announced that its board had formed a special committee to investigate the allegations—but says now that’s not possible, due to its frozen bank accounts.

Kingold also said it was expelled from the Shanghai Gold Exchange on June 20, after that exchange determined that it had committed unspecified violations of its rules and regulations.

In addition, the company faces two class-action suits from purported shareholders, the first filed last month, which claimed that Kingold executives filed “misleading” statements when they declared that their loans were backed with gold.

The company has been listed on Nasdaq since 2000, but now that is also in doubt. On July 6, ... "

https://www.jckonline.com/editorial-art ... obed-gold/
PinkDiamond
ISG Registered Gemologist


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