19 March 2018 | lor_

Well-made expose of a lesser-known fraud

Jed Rothstein does a bang-up job in bringing to cinematic life a recent but underreported massive fraud perpetrated on U.S. stock investors by unscrupulous Chinese companies and equally shady American brokers, auditors and lawyers. It is a timely documentary in this era where Republican domination of the federal government, and there absurd anti-regulation crusade merely encourage more such fleecing of the public.



Principal whistleblower here is a Pennsylvanian by way of Flint, Michigan (famed as the home of veteran movie muckraker Michael Moore) named Dan David, who declares at the outset of the show that there are no good guys depicted, himself included. He headed up an investment firm that helped push several new Chinese companies on the Big Board, only later to discover that their profits and vast growth were fictional.



The gimmick started with Reverse Mergers, whereby a company would merge into an SEC registered company of old that was inactive, say a 19th Century mining corporation. That trick circumvented the due diligence necessary for a new company to gain a stock listing, and creepy folks here in the U.S. took it from there.



Location footage shot secretly in China show how phony the supposdly booming companies actually were, and interviewees take us through the potentially dry financial machinations that come alive under Jed's direction. Dramatic highpoint occurs when former presidential candidate Gen. Wesley Clark walks off the set during his interview, rightfully realizing it will put him in a bad light as ex-CEO of one of the misbehaving investment banks.



Ultimately I suspect the ongoing wave of Republican party and right-wing propaganda will overwhelm this film or any other's message, in favor of advancing the shibboleths that ending government supervision (read: "interference") with the free market will solve all ills. Just as Trump so easily gets away (so far) with every outlandish denial or contradiction of the truth on a daily basis, such eye-opening exercises as this fact-filled documentary require a public willing to listen, something currently not in the cards.