San Diego, Aug 17, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Sinotech Energy Ltd ADR (NASDAQ:CTE) over possible Violations of Securities Laws by Sinotech Energy Ltd and others was announced.

The investigation by a law firm focuses on possible Sinotech Energy (NASDAQ:CTE) shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether Sinotech Energy Ltd or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.

Sinotech Energy Ltd ADR reported an increase in its 12months Total Revenue from $24.90million reported on Sept 30, 2007 to $45.31million reported on Sept. 30, 2010. Despite an increase in its 12months Net Income from $8.11million reported on Sept. 30, 07 to $14.53million reported on Sept. 30, 09, its Net Income fell to a Net Loss of $13.68million reported on Sept. 30, 2010.

Shares of Sinotech Energy Ltd ADR (Public, NASDAQ:CTE) rose to as high as $8.69 on March 2011.

However NASDAQ CTE stocks fell from over $4 on August 15, 2011 to a close of $2.35 per share on August 16, 2011 after a report was issued by a website raising a number of potential red flags of fraud at SinoTech Energy.