Society owes me a brother

After experiencing the tacit cooperation of successfully shorting AK Telecom, Lu Chi and Eric Weiss became more and more familiar with shorting ST Communication.

The same recipe and the same taste, Eric Weiss was the first to question the profit model of ST Communications and the data disclosed in the financial statements in front of the media.Only this time, the speed of M State Securities Regulatory Commission is faster than that of Eric Weiss——

Different from the conventional pattern of "someone raising doubts—throwing a stone hammer about the corporate accounting scandal—the stock price fell—the SEC intervened in the investigation", the California Securities Regulatory Commission established an investigation team as soon as it learned of the financial scandal of ST Communications.

As we all know, although it is often criticized in terms of supervision, the credibility of the M country's Securities Regulatory Commission in the M country's financial market has always been good.Because of this, the news that the investigation team of the China Securities Regulatory Commission entered ST Communications immediately attracted the attention of the public.

Subsequently, the China Securities Regulatory Commission lived up to expectations. After the investigation team settled in ST Communications, they found in the process of auditing the accounts that in the project of ST Communications’ expansion of the telecommunications system engineering, a large number of expenses related to the project were not recorded as normal costs, but as Capital expenditure processing artificially "creates" huge profits for ST Communications in the financial statements by inflating cash flow and profits, defrauding shareholders and investors, thereby stabilizing the stock price of ST Communications.

Because this process involves an accounting firm that does financial statements and audits for ST Communications.In order to further verify the specific figures that ST Communications falsely reported in the matter of financial fraud, the California Securities Regulatory Commission also summoned the personnel involved in the accounting firm serving ST Communications to cooperate with the investigation.

In mid-July 2002, under the pressure of the China Securities Regulatory Commission, the board of directors of ST Communications had to hold a press conference, admitting that ST Communications had falsely reported a profit of at least 7 billion yuan in its open financial statements—this figure It is very close to the data initially predicted by Lu Chi in the conference room of the China Securities Regulatory Commission.

Therefore, after the press conference of ST Communications, many financial people immediately thought of this young financial genius.However, Lu Chi felt that this figure was obviously watery - after all, due to limited time, he only investigated ST Communications' financial statements for the two quarters in the first half of 2002.However, many data show that since 2000, ST Communications has already started to tamper with financial statements.

In other words, ST Communications' falsely reported profits are definitely more than four billion.

"...So ST Communications is still fighting in the corner!" In the slowly driving car, Zhang Yang, a classmate in a suit and leather shoes, was lying on the back seat with a smile, and said with a mean expression: "I guess, if you weren't in the Securities Regulatory Commission This figure was predicted in the meeting room, maybe ST Communications can underreport it a little... Do you think they will hate you to death?"

"Hey, do you think they will become angry and buy murder directly?"

Yue Bin, who was sitting in the co-pilot's seat, turned around and leaned on the backrest, and said helplessly, "Can you stop being scary?"

"I'm not scary!" Zhang Yang put his hands on his arms and diverted his thoughts: "Isn't there a saying that capital dares to take risks for 50.00% profits, and dares to trample on all laws in the world for [-]% profits... Let's go short these two times The profit of AK Telecom and ST Communication is more than [-]%!"

"So why did you come to California during the summer vacation? Why don't you just go home and squint!" Yue Bin gave Fa a small look angrily.Why are you so alarmist, wouldn't it be good to just hire a few more bodyguards to guard around!

Zhang Yang couldn't bear it and rolled his eyes, he really couldn't stand Fa Xiao's way of favoring one another and stealing one's ears.

"Didn't I come here to work part-time?" Zhang Yang said with a smile: "Don't forget, I am also a major shareholder and important employee of our campus network. After finally coming to the summer vacation, of course I have to come to work. Not only me, after waiting Two days after Xing Yuan and Cui Zhenyang finish training, they will also come over."

Needless to say, he would still have to live in the small apartment rented by Yue Bin and Lu Chi.

Thinking of this, Zhang Yang couldn't help laughing again: "I said, two rich classmates, you have earned so much, don't you want to change your house, change your car, buy a yacht or something. Why is it still the old shotgun, and you are not going to change it Cannon?"

"What gun to change, I think you're about the same for a date." Yue Bin glared at Fafa again angrily.He and Lu Chi worked so hard to build the nest, how could they just change it!

Besides, not long after Lu Chi came over, he contacted the landlord to buy the house.After all, this house is a testimony of the two of them's college life, and Yue Bin doesn't want to see other people living in this house after the two of them graduate——

Thinking of this, Yue Bin suddenly had a flash of inspiration, and he turned around immediately, staring at Lu Chi's side face with burning eyes, and said eagerly: "Lu Chi, your programming is so good, can you find a way to set up a security system at home or something?" , I will directly find someone to help us transform it."

Sitting in the driver's seat and driving seriously, Lu Chi said with a smile while waiting for the red light, "Okay!"

Zhang Yang stood guard in the back seat, watching the interaction between the two with cold eyes, feeling inexplicably covered in something.

The car drove steadily all the way to Locke Manor.

It was evening, and the whole manor looked more refined and luxurious under the setting sun.A meandering river surrounds the manor, sparkling in the setting sun, like a crimson agate belt.The manor was brightly lit, like daytime, the car circled the musical fountain and stopped at the gate, and Lu Chi and others got out of the car one after another.Matthew Locke, who was wearing a formal dress, and several other young people from the Locke family stood at the door to receive the guests.After seeing Lu Chi's figure, Matthew Locke was refreshed and immediately greeted him.

"My dear Lu, you are finally here." Matthew Rock hugged Lu Chi with open arms, and said with a smile: "My father is waiting for you."

As he spoke, he nodded with Yue Bin and Zhang Yang.

Before the words finished, a girl with black hair and brown eyes came up and said with a smile, "Brother, why don't you introduce us?"

Matthew Locke turned his head, hugged the girl's shoulders, and said with a smile, "Let me introduce you. This is my sister Angel. Angel, these are my friends, Lu, Yue, and Zhang."

Angel Locke smiled slightly and said, "Nice to meet you."

The three of Lu Chi took a surprised look at Angel Locke—because the girl turned out to be fluent in Chinese.The pronunciation is accurate, with a little Beijing accent.

Matthew Locke said with a smile: "My sister, like my father, has always been very interested in Chinese culture."

Angel Locke said with a sly smile: "How about it, my language talent is not bad, right?"

This sentence turned into Tangshan Weier's Mandarin.Looking at the local words of the delicate-looking Jewish girl, this feeling of joy is simply amazing.

Everyone smiled, and Zhang Yang said: "Not only is it good, your language talent can be called astonishing."

Angel looked at Zhang Yang's undisguised astonished expression, nodded slightly, and said with a reserved smile, "Thank you for your compliment."

Matthew Locke said, "I'll take you to see your father."

So everyone walked into the banquet under the personal leadership of Matthew Locke.

Old Mr. Locke was surrounded by a group of people and stood in the center of the banquet.Matthew Locke walked up with people and introduced to Old Locke: "Father, my friends are here."

Old Locke turned his head while holding the wine glass, his clear eyes swept over Lu Chi and the others one by one, and then smiled.The well-built beard moved slightly under the influence of the smile, and the old Mr. Locke said with a smile: "It turns out that he is the most watched rookie king on Wall Street, and his investment partners have arrived."

Old Mr. Locke said, but he still nodded to Yue Bin and Zhang Yang, and greeted with a smile: "I haven't seen you for a long time, how are your father and brother?"

Yue Bin and Zhang Yang also followed suit.The two often attend similar occasions with the adults in the family, and they do everything with ease.

On the other side, following Old Locke's actions, the "big shots" at the banquet looked over one after another.A white-haired gentleman standing next to Old Locke cast his eyes on Lu Chi, and said with a smile: "So this is the genius boy who found out that there was a problem with ST's communication accounts at the China Securities Regulatory Commission. You are very good."

"Can you tell me how you determined that there was a problem with ST Communications? As far as I know, you figured it out in just a few 10 minutes after prosecutor Stephenson pointed out the stock of ST Communications at random?" A young man with a handsome appearance but a somewhat flirtatious temperament came over.His features were somewhat like old Mr. Locke.

Matthew Locke frowned unobtrusively, leaned into Lu Chi's ear and whispered: "This is one of my cousins. He is currently helping my father manage the family's financial business."

At the family meeting before, it was this cousin who first suggested that Matthew Locke take out the profits from shorting AK Telecom.And also got the consent of the majority of the family.Fortunately, the old Mr. Locke finally stood by his son, otherwise Matthew Locke would not be what he is now.

Lu Chi blinked, nodded sharply and said, "Yes!"

Mr. Cousin: "..."

A crowd of onlookers: "..."

Matthew Locke held back the corners of his mouth from twitching, and almost didn't laugh out loud.Mr. Cousin glanced at Matthew Locke, and asked with a calm smile, "Can you tell me more about it?"

Lu Chi glanced at the other people who were very interested, pondered for a moment, and said a series of formulas and financial principles in a concise manner: "Bring in the data, and you will know that there is a problem with ST Communication's financial statements."

Mr. Cousin: "..."

A crowd of onlookers: "..."

What should I do if I still don't understand? !

Matthew Locke raised his eyebrows gloatingly: "My cousin is not bad at mathematics. He must understand. Unlike me, I can't understand what you say. But there is nothing wrong with this, I just You need to believe in you, and then you can wait for the money with peace of mind.”

Hearing what Matthew Locke said, Mr. Cousin's smile obviously couldn't hold back.

In the end, it was the old Mr. Locke who calmly helped his nephew: "Lu is your friend, and also a friend of our Locke family. Take your friends to play. Spend time with your friends and let everyone Have fun."

As he said that, Mrs. Locke, who was standing beside the old Mr. Locke, still smiled and greeted: "...Come and play when you have time. I can let Matthew accompany you to hunt."

Lu Chi and the others smiled and thanked them.Matthew Locke is about to take everyone away,

Angel Locke immediately put his arms around his mother's shoulders, and said with a smile, "I'm going too."

Mrs. Locke certainly would not disagree.So a group of boys and girls left the banquet hall under the gaze of all the guests.

Mr. Cousin, who had been beaten by Lu Chi, also caught up.He asked straight to the point: "I heard that Mr. Lu's data analysis ability is very good. So from what you can see, how far will ST Communications go? Will it go bankrupt like AK Telecom?"

Standing in front of the long buffet table, Lu Chi stared at the assortment of ingredients such as steak, lobster, crab and arctic shellfish on the table, and said casually: "It should be."

"I don't think so." Mr. Cousin hooked his lips confidently: "Because after studying the current situation of ST Communication, I think ST Communication is still valuable."

"I would suggest that the Locke family acquire ST Communications."

"Really?" Lu Chi raised his eyebrows, and while taking the prawns and crabs that Yue Bin had peeled for him, he said, "I suggest you wait and see."

What do you mean?

it means--

On the second day after the Locke family banquet, the China Securities Regulatory Commission announced their investigation report on ST Communications, which showed that ST Communications had found several wrong accounts.So far, the amount of false profits involved in the financial scandal of ST Communications has exceeded [-] billion.

Affected by the fraudulent account scandal, the corporate image of ST Communications was seriously affected, and the stock price plummeted.The market value of the group has shrunk severely. The US Securities and Exchange Commission even brought ST Communications to court in the name of financial fraud.

At the beginning of August 2002, ST Communications, which suffered successive scandals and revealed that the company's market value had dropped below 8 million yuan and its credit rating had dropped to "garbage roll", had to apply to the court for bankruptcy protection.At the same time, the accounting firm employed by ST Communications was also prosecuted by the China Securities Regulatory Commission for accounting fraud, and after the lawsuit ended, it directly withdrew from the audit market because of professional ethics being questioned and other issues.

However, the securities market in country M did not return to calm following the bankruptcy of ST Communications.As if a bad luck switch had been turned on, in the next period of time, with the vigorous action of the China Securities Regulatory Commission, the investigation activities to check the audit process of listed companies spread to the entire M country.Under the continuous thunderstorms from the China Securities Regulatory Commission, listed companies listed on the New York Stock Exchange and Nasdaq have been exposed to scandals of financial fraud one after another. The credibility of the country's financial market has been seriously questioned, which has further damaged investors' confidence in Wall Street.The Washington side even expressed great shock and concern at the chaotic situation in which listed companies in country M falsified their financial statements arbitrarily.

In order to strengthen the supervision of listed companies in country M, in September 2002, the president of country M formally signed the "Public Company Accounting Reform and Investor Protection Act".This directly led to a substantial increase in the financial costs of companies in country M and international companies listed in country M.

However, for the Wall Street bears whose core is capital pursuit of profit, the top priority is that everyone simply ignores the series of follow-up issues raised by the government of country M after passing the "Public Company Accounting Reform and Investor Protection Act".They have been completely lost in this once-in-a-year bear feast.

Due to the financial scandals that broke out one after another, stockholders and investors generally lost their investment confidence in Wall Street.The market in the financial market of country M is generally falling.Inspired by the continuous short-selling actions of Lu Chi and Eric's assets, now, every capital on Wall Street is trying to short-selling.The energy industry, the communication industry, the high-tech industry, and even the consumer goods industry... the entire financial market has revealed the fear of being dominated by capital.

Financial scandals, extreme distrust of investors... The current situation of the capital market's demons dancing wildly is simply eye-catching.Just when everyone was trying their best to squeeze into this carnival feast set off by Wall Street short sellers, Lu Chi, as the "initiator", quietly withdrew with the huge amount of capital he had scavenged in the financial market.