Company Overview of China MediaExpress Holdings, Inc.
China MediaExpress Holdings, Inc. provides television advertising network on inter-city express buses in China. It offers advertisements on its network of television displays installed on express buses originating in five municipalities of Beijing, Shanghai, Guangzhou, Tianjin, and Chongqing, and nine provinces, including Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei, Shandong, and Shanxi in China. As of June 30, 2009, the company’s digital television advertising network consisted of approximately 16,000 express buses and approximately 34,000 digital television displays. China MediaExpress Holdings, Inc. is headquartered in Fuzhou, the People’s Republic of China.
Key Executives for China MediaExpress Holdings, Inc.
Chief Administration Officer
Compensation as of Fiscal Year 2014.
China MediaExpress Holdings, Inc. Key Developments
The Securities and Exchange Commission Charges China MediaExpress with Fraudulently Misleading Investors About its Financial Condition
Jun 24 13
The Securities and Exchange Commission (SEC) charged China MediaExpress and its CEO Zheng Cheng with fraudulently misleading investors about its financial condition by touting cash balances that were millions of dollars higher than actual amounts. As highlighted in the SEC's complaint, China Media's falsely reported increases in its cash balances allowed the Company to attract investors and raise money from stock sales. In 2010, a hedge fund paid China Media $53 million to purchase millions of shares of China Media's preferred and common stock. China Media had gained access to U.S. investors through the reverse-merger process and had a market capitalization of more than $700 million before the fraud was uncovered. Public investors suffered major losses when the stock tumbled more than 90% in the weeks after the first fraud allegations. The stock has since been delisted from the U.S. stock exchange. In March 2011, China Media's external auditor resigned citing suspicions concerning fraudulent bank confirmations and statements, and falsified confirmations of accounts receivables and payables. The company's audit committee then hired a law firm and a second outside audit firm to investigate. According to the SEC's complaint, right before the fraud became public knowledge, Cheng offered a senior accountant working on the investigation a bribe of approximately $1.5 million to assist with the investigation.
SEC Declares Decision As To Revocation Of Registration Of Registered Securities Of China MediaExpress Holdings as Final
Aug 28 12
The decision of an administrative law judge with respect to China MediaExpress Holdings, Inc. has become final. The law judge found that China Media violated 13(a) of the Securities Exchange Act of 1934 and Rules 13a-1 and 13a-13 by its failure to timely file an annual report on Form 10-K for 2010, and other required periodic reports since November 2010, when it filed a Form 10-Q for the period ended September 30, 2010. The law judge noted that China Media’s violations were recurrent and egregious in that they have continued from November 9, 2010, to the present. The law judge further noted that, when China Media’s auditors determined that continued reliance should not be placed on its 2009 audit, it deprived its investors, for the nearly three years that it has existed as a corporate entity, of its audited financials statements. The law judge found that it is in the public interest to revoke the registration of China Media’s registered securities.
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