Imagi Int'l unable to reach executive director Shan Jiuliang

    Imagi International (00585) said it noted news report from www.kunming.cn states that Kunming Municipal People's Government announced a suspected crime committed by Kunming Fanya Metal Exchange Holdings Company Limited.
  The notice states that the Public Security Bureau of Kunming have opened file to investigate the suspected crime of illegal absorbing public deposit by Kunming Fanya Metal Exchange Holdings Company Limited since 1 December 2015.
  The preliminary investigation shows that Kunming Fanya Metal has breached the trading rules in April 2012, by providing "entrust and trustee" business. In the absence of approval from relevant departments, Kunming Fanya Metal and Yunnan TianHao Rare Precious Metal Co., Ltd. and other associated companies adopted wash sale approach to manipulate platform prices and to create a false impression of hot trading. Meanwhile, Kunming Fanya Metal printed a raft of propaganda materials and packed the "entrust and trustee" business into various products, such as "Ri Jin Bao" and "Ri Jin Scheme", to put into the society through nationwide authorized service institutions and network and electronic information department of the company. Such products guaranteed a fixed annualized return from 10% to 13% and the return is independent of the ups and downs of prices of goods so as to absorb deposits from unspecified groups in the society to form a "fund pool" of Kunming Fanya Metal and thus grabbed a large amount of cash. 
  As at present, Shan Jiuliang, the beneficial owner and the director of the Kunming Fanya Metal, together with other 15 main suspects are warranted by Kunming Municipal People's Procuratorate and various public security bureaus have taken compulsory measures against certain suspects related to the case.
  In the article, it refers to Shan several times whose name corresponds to the Chinese name of one of Imagi's executive director Shan Jiuliang. Imagi has not been able to reach Shan since late last year, it has instructed lawyers to ascertain whether the named Shan who was arrested is indeed its director Shan, and whether the associates referred to in the article included any other directors of the company.