WASHINGTON, Oct. 18 /PRNewswire/ -- Announcement by American
Bondholders Foundation -- The head of the American Bondholders Foundation
charged in a complaint filed with the U.S. Securities and Exchange
Commission that the People's Republic of China is defrauding American
The complaint filed by the Tennessee-based group of Chinese bondholders
accused the Chinese government of attempting to "perpetrate a deception
upon the investing public through omissions of fact (in the form of
'half-truths') and the intentional concealment of material facts..."
"The Securities and Exchange Commission has been lax in enforcing
disclosure requirements against China," said ABF President Jonna Z. Bianco.
"If America's investing public knew and understood the details of the
dark history of China and its refusal to pay its debts to Americans, China
would not be able get another dime from the American people".
"Thousands of Americans who invested in pre-1949 bonds to help China at
a time when China desperately needed help can now attest to the fact that
poisoned pet food and toys are not the only bad things to come out of
China. The Chinese government continues to peddle new bonds while refusing
to honor bonds issued in the past.
"And the most shameful dimension of all of this is the U.S. Securities
and Exchange Commission sits as a silent accomplice while more Americans
are exposed to the swindle."
"The credit rating agencies, Standard and Poor's, Moody's and Fitch are
clearly aware of China's defaults, yet turn a blind eye in order to rake in
immense profits from China even though giving premium credit rating status
to the People's Republic of China enables the opportunity for more losses
to American investors. The rating agencies' failure to acknowledge China's
default by assigning the truthful 'Selective Default' rating classification
to the Chinese government (as required by the rating agencies' own
published definitions and rating criteria) reveals the credit rating
agencies' complicity with China in the perpetration of a fraud upon the
investing public. Investors have experienced the devastating effects
firsthand from similar scandals in the past, including World Com, Enron,
and most recently, the sub-prime markets ... when will it end?"
The ABF Complaint was addressed to SEC Chairman Christopher Cox and
three other officials of the federal agency. It requests that the SEC "hold
the People's Republic of China, their state-owned enterprises, businesses
and corporations to the very same policies and procedures, rules and
regulations, laws of proper disclosure and reporting requirements that U.S.
businesses and corporations are required to adhere to."
The American Bondholders Foundation, LLC is an organization comprised
of U.S. individual owners of Chinese Government full faith and credit bonds
issued prior to 1949 and due to mature in 1960, which seeks to require
China to abide by settled international law and honor its contractual
sovereign obligations to bondholders.
China has refused to make payments to American bondholders even though
it settled the claims of British bondholders in 1987.
For a copy of the complete ABF- SEC complaint, please contact:
James Lafferty, Press Secretary
American Bondholders Foundation, LLC
2840 Glasscock Road
Lewisburg, TN 37091
SOURCE American Bondholders Foundation, LLC