RE:RE:They loaned their own relatives $3 MILLION, told investorsIIn that case the amount of money was $377,863 seems Boris is upping his game.
https://www.ecoweek.ca/issues/ISarticle.asp?aid=1000214116 "
Much has been written about the problems foreign companies face when they invest in China through joint ventures with state-owned enterprises. Misused funds, unfulfilled contracts and unconventional business practices usually top the grievance list.
But Gold World Resources (GDW-V, GLWDF-O) had a vastly different experience with a Chinese project that went terribly wrong.
Instead of being ripped off by Chinese partners, it looks like it may have been fooled by a Canadian venture -- run by members of its own board -- that promised it could secure a 70% interest in a 16-sq.-km gold property in China's Henan province.
Between October 2005 and June 2006, Gold World Resources set up a joint venture with the Canadian company, called World Fortune Enterprises. World Fortune's principals are Richard Tong, a major shareholder who later became a director of the company, and former Gold World Resources company president, Boris Ziger.
Gold World invested $377,863 in the joint-venture company, Gold Luck, in the belief that World Fortune had acquired a 70% interest in the Xiqingganping gold property in Henan province. In March, Gold World announced that it planned to launch the first phase of a $1.2-million exploration program.
In April, Gold World's two independent counsels began their review of the status of the company's ownership of both the joint venture and the Henan gold property and was unable to establish one.
The TSX Venture Exchange halted trading of the company's stock on May 31 and suspended it on July 25 to complete a review of the company. Ziger was asked to resign as president of the company on April 4.
Gold World's initial foray into China serves as a cautionary tale to would-be investors: Beware the middleman.
"Do very careful due diligence with the people that are promoting these deals," warns Hermann Derbuch, who took over as chief executive and chairman of the company in October 2006 and has spent much of his time since then sorting through the mess he inherited.