S. Paul Kelley: Man Behind Sketchy Chinese Reverse Mergers (TSTC, KNDI, ORS, NOEC, CALI, CIIC, GPRC)

Sharesleuth.com posted a fascinating investigative piece, examining the murky world of Chinese reverse mergers. According to the article, a man named S. Paul Kelley and his partners have helped create a string of U.S.-listed Chinese companies, many of which have seen significant share price declines after initially notching big gains. These companies include Telestone Technologies TSTC and Kandi Technologies Corp. KNDI. After the companies were reverse merged into listed shell companies, Kelley and his partners promoted the stock and were given millions of dollars in shares for their efforts. According to Sharesleuth.com, Kelley has assisted in at least 11 Chinese reverse mergers, which are listed below. Investors who are in any of these names are advised to read this report, as it is extremely detailed and exposes some of the shady practices that is taking place in the Chinese reverse merger space. Telestone TSTC Telestone sells wireless communications equipment and network access packages, primarily to China's three main mobile phone companies. The Beijing-based company went public in 2004 by merging with a U.S. shell that had just reorganized in bankruptcy court. Orsus Xelent ORS The company, which also has headquarters in Beijing, manufactures and distributes cellular telephones. Kelley helped the company gain a U.S. listing in 2005. New Oriental Energy NOEC The company is based in Xinyang and makes fertilizer and chemical products. It went public in 2006. Kandi KNDI The company, which currently has headquarters in Jinhua, makes all-terrain vehicles and go carts, and is developing its own line of electric cars. Kandi became a public company in 2007. China INSOnline (Pink Sheets: CHIO.PK) The Beijing-based company once operated a web portal offering information on insurance services. Kelley helped bring the company public in 2007. Its shares were delisted from the Nasdaq in November and now trade on the Pink Sheets. China Auto Logistics Inc. CALI The company, which has headquarters in Tianjin, imports and sells cars. It went public through a reverse merger in 2008. China Infrastructure Investment Corp. CIIC The company has headquarters in Zhengzhou and owns and operates a toll road called the Pinglin Expressway. Kelley helped it get a U.S. listing in 2008. Guanwei Recycling Corp. GPRC Guanwei is based in Fuqing City and recycles plastic waste from Europe into polyethylene for use by Chinese manufacturers. It went public through a reverse merger last year. Winland Online Shipping Holdings Corp. WLOL The Hong Kong company operates a fleet of oceangoing vessels and offers shipping and logistics services. It became a public company in 2008. CH Lighting International Corp. (Pink Sheets: CHHN.PK) CH Lighting is based in Shangyu City and makes fluorescent bulbs, lamps and other lighting products. The company, which once traded on the Over-the-Counter market, became public in 2008. Chisen Electric Corp. CIEC The Changxing-based company makes batteries for electric bicycles, motorcycles and cars. It became a public company in 2008.