CTE Sinotech (MM)

The law firm of Berman DeValerio is investigating possible securities fraud claims involving SinoTech Energy Limited (NASDAQ: CTE) (“SinoTech” or the “Company”).

Berman DeValerio (www.bermandevalerio.com) is one of the nation’s top law firms representing investors who seek to recover money due to stock fraud. The firm initiated its investigation shortly after a research analyst writing under the name Alfred Little published an investigative report (the “Report”) detailing numerous problems affecting SinoTech’s previously issued financial statements and future prospects. The Report found, among other things, that: (1) the Company’s sole import agent, who accounted for more than $100 million worth of oil drilling equipment orders, is an empty shell company with no sign of operations; (2) the Company’s only chemical supplier is also an empty shell company, with little or no revenues; (3) the Company’s largest subcontracting customer, which provides the vast majority of SinoTech’s revenues, has unverifiable operations with minimal revenues; (4) the financial statements SinoTech issued in the United States are inconsistent with similar filings the Company made in China; (5) the Company has engaged in undisclosed related-party transactions in violation of Generally Accepted Accounting Principles; and (6) positive statements the Company made regarding its internal financial controls were false and misleading.

The day the Report was issued, the Company’s stock price plummeted more than 40%, falling from $4.02 per share on August 15, 2011 to $2.35 per share at the close of trading on August 16, 2011 – a decline of $1.67 per share on unusually high trading volume. The NASDAQ halted SinoTech trading after the market closed on August 16, 2011, announcing that trading would remain halted until the Company “fully satisfied NASDAQ’s request for additional information.” To date, trading has not resumed.

If you purchased or acquired SinoTech’s securities between November 3, 2010 (the date of its initial public offering) and August 16, 2011 and would like to learn more about your legal options or share information relevant to the investigation, you may contact Jason Leviton, Esq. at Berman DeValerio.

Berman DeValerio (www.bermandevalerio.com) is a national law firm representing investors for violations of securities and antitrust laws. The firm has 41 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.

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