China Energy Savings, for example, traded on the Nasdaq and was added to the Russell 2000 until a three-month halt earlier this year after its stock had slipped to around $7 from highs of nearly $30. It was then relegated to the pink sheets where it traded until Tuesday, when the SEC suspended trading citing a lack of "current and accurate information." Among the issues, according to the SEC, are whether China Energy Savings' former "purported" CEO, Sun Li, ever existed.

There's no question about whether China Automotive Systems CEO Hanlin Chen exists; he once rang the opening bell on the Nasdaq. But there is a question about his MBA, which he says in SEC filings came from Barrington University. A China Automotive spokesman says it was a "distance" learning program. However, an investigation several years ago by the Government Accountability Office's Office of Special Investigations showed that Mobile, Ala.-based Barrington, which no longer exists, was among several "diploma mills" that sold diplomas "on a flat-fee basis." The spokesman says the company declined further comment.