Joel Caplan

12 Bartenura
Jerusalem, Israel
050-437-0573

Jason Pau
Office of the Executive Chairman/Special Asst for Int’l Business Affairs of Honorable Jack Ma
NO 969 West Wenyi Road Yuhang District
Hagnzhou, China

May 1, 2018

Dear Jason Pau, cc: Honorable Dr. Jack Ma Honorary PhD Tel Aviv University

It was such a pleasure to meet you briefly at the event at the JVP in Jerusalem, Israel. May each
moment in Israel be a blessing for you and Jack and your entire team. You know here in Israel, we are
often repeating that the Creator is One and also to love and respect our neighbor as we respect oneself.

We also have a commandment from our Holy Torah to “pursue justice” which is written in the 5th book
called Deuteronomy (Devarim) Chapter 16, verse 20 “Justice, justice you shall pursue.” The Chinese for
this is “ 你要追求公正公义，好使你能存活，并且能承受耶和华你的 神赐给你的地作产业”

And the Hebrew is

:‫ֹתן ָ ִּֽלְך‬
ֶ֥ ‫ֹלהיָך נ‬
ֶ֖ ֶ ֱ‫ֶצ ֶֶ֥דק ֶצ ֶֶ֖דק ִּת ְר ֹדֹּ֑ף ְל ַ ַ֤מעַ ן ִּ ִּֽת ְחיֶה֙ ו ָ ְִּֽי ַָֽר ְש ָ ָּ֣ת אֶ ת־הָ אָָ֔ ֶרץ אֲ ֶשר־יְהֹ וָ ֶ֥ה א‬

While I was so happy and excited to meet you and hear Jack’s ideas on Israeli Start-Ups, I must also say
that deep in my heart, I have such a pain and sadness about losing 10 years of my savings in a Chinese
Reverser Merger fraud called Advanced Battery Technologies (ABAT) which used to make electric bikes,
e-scooters and polymer-lithium phosphate batteries while it traded on the NASDAQ after raising
$100,000,000 in my country of birth. I pursued and was successful in winning a Court Judgment in the
United States Delaware Court of Chancery, but as you may know China does not honor US Court
Judgments at all, without a very high level approval and influence, which usually does not happen.

As you may also know, a documentary/expose was released last month called “The China Hustle”. It
was produced by Billionaire Marc Cuban and directed by Oscar winner Jed Rothstein who also directed
an American fraud movie called “Enron; the Smartest Guys in the Room”. This is the website . . .
https://www.thechinahustlefilm.com/ This movie is likely to be nominated for the documentary of the
year because of its truth-telling and hope for justice for hundreds of thousands of Americans who also
lost life-savings through no fault of their own.

The movie is now playing in New York and Los Angeles and Miami and was also released on Netflix and
Amazon. It is being reviewed by all the big newspapers in the United States.
Here is one review. . . https://www.vanityfair.com/hollywood/2018/03/china-hustle-documentary-
financial-crisis-scandal-director-interview

The documentary/expose shows how 200-300 Chinese RTO’s or Reverse Merger companies caused an
investment loss of approximately 35 Billion dollars which affected an uncountable number of US and
Canadian investors, including myself. The subject of Alibaba and Jack Ma are part of the movie in the
end and the status of Alibaba are given fair treatment but it is an open question depending on how
Alibaba makes future choices. I believe that Mr. Ma and President Xi and yourself could do something
to help restore the reputation of China worldwide and certainly in Israel by helping investors like me
who lost their life savings through accounting fraud. It is in your power to restore integrity, dignity and
trust (诚信，尊严和信任) in these Chinese Reverse Merger situations by honoring the US Court
Judgements and compensating the investors who pursued these matter through legal channels. Upon
the US Court’s rulings shareholders deserve to be paid up to “fair value” for the worthless stocks that
they are still holding.

I personally lost close to one million dollars (including years of my time) and basically am now a very
poor man, living here in Jerusalem and telling my story to government officials, Chinese tourists,
university students and many other and plan to continue to do so. So, while I won a Court case in the
United States in the Delaware Court of Chancery Case # 9542-VCMR, as you may also know, it is very
difficult if not impossible for foreigners to settle their cases in the PRC because China does not yet honor
US Court Judgments whatsoever and there is no treaty. (I have attached the Court Order for 9542-
VCMR which valued my shares (after three years) at “fair value” which is $27.50/share using an expert
forensic accounting technique with a qualified professional accountant upon the Court’s request.

The law firm which is handling many of these cases, including mine, has one billion dollars worth of
unpaid Court Judgments in many Courts in the United States. This law firm is the Seiden Group
(http://www.seidenlegal.com/) in New York City. Eventually, I think there will be justice, but by then I
could be an old man or dead. I am already 50 and invested in China nearly 8 years ago. We won this
particular court case in Delaware nearly 3 years ago, but no monetary distribution has happened yet.
Other cases were also won by US investors but, most investors in the United States lost everything
because there is no accountability by the PRC, nor is it easy for harmed investors to actually get paid for
these hard won Court Judgments. Considering there were over 200 companies that did these Chinese
Reverse Mergers, there are only a handful of cases which could, in fact, be brought to justice and restore
faith and trust that China and companies like Alibaba play fair and are honest and can be held
accountable if the law is broken.

Therefore, I am seeking someone, a Chinese National or group of Nationals, to purchase my shares of

Advanced Battery Technologies (ABAT) and other shares of Chinese Reverse Mergers that I own even for
a very small amount (like 1/3 of “fair value”) I understand the Chinese are very honorable people who
like to handle these types of matters privately to protect the reputation of Chinese “honesty in business.”
One day, the shares will possibly be worth something again in mainland China when they list them in
Shanghai or the law firms in the US will find a way to negotiate successfully and fairly and not just be
paid “pennies on the dollar”. In the meantime, someone can either potentially profit by owning these
shares in China, while also helping out a poor Jewish man in Jerusalem, Israel who was greatly harmed
by these accounting frauds.

I personally toured the factories of Advanced Battery Technologies in Wuxi, Harbin and Dongguan and
saw thousands of Chinese people working. But in the end, the shareholders really didn’t own anything
because it was structured through a VIE, just to get the money from the USA and subequently
$250,000,000 of market cap disappeared just like that. The net profits were not real. The revenues were
not real and in fact, they were misrepresenting to the US government and breaking US Security Laws.
When the fraud was discovered, the stock was deregistered by the NASDAQ, and eventually
deregistered by the SEC and not tradeable. To add “salt to the wound” the Chinese government took
over the factories and sold or hid the equipment and did not communicate with the shareholders, nor
did they make any more filings. To the reader. . . . Is this right? Is this fair? Is this justice? Is this good?
Does this build trust and respect between China and the rest of the world? 这是正确的吗？ 这是否公
平？ 这是正义吗？ 这个好吗？ 这是否建立信任和尊重？

Jason, would you be able to help me at all? Perhaps you could put me in touch perhaps with investors
or a group of philanthropist that could pay me something to take ownership of my shares of ABAT, CSGH,
SCEI, CBEH or CCGY. Again, I would accept very little just so that at my age of 50 years old, I could pay
my bills and leave a peaceful life here in Jerusalem.

I would feel my prayers were answered if someone could buy my shares which would help me to restart
an honorable business and take care of my ailing parents. At the moment, my other plan is to show the
movie and advertise it around Jerusalem, Tel Aviv and Haifa and tell my story of 3 visits to China and
being tricked and deceived to many of the tourists that visit the synagogues, churches, holy sites,
business schools and Israeli-China partnerships such as JVP.

Mr. Ma, I am a United States and Israeli citizen who was greatly harmed by accounting fraud in your
country. This fraud was one of many. They were formulaic and they were harmful. This could be a
wonderful opportunity to help a Jewish man who trusted his Chinese countrymen, even as an act of
charity--慈善行为. Ultimately, the accounting that I believed in was not “true and correct” as required
my US law and in this one case of ABAT, they raised $100,000,000 under false pretenses which is just
another way of “stealing” money from innocent people. These types of tricks undermine trust and
goodwill globally. And while mechanisms exist to bring justice to harmed people, if the executives and
CEO’s then just “hide in China”, this goodwill just simply does not take place as G-d want it.

Therefore, I would prefer to quietly find a buyer for my shares or be helped in some other way so that I
can just live out my life and start over in a new business.

The CEO of Advanced Battery Technology was/is Zhigou Fu, 傅治国

https://www.bloomberg.com/profiles/people/7048875-zhiguo-fu .

He claims he had no money to pay the US lawyer beyond a very, very small portion. The Chinese
government took over all the factories and never communicated with the shareholders again. In our
case, the remaining group is only about 15 people and a hedge fund and the whole situation with our
shareholder group could be fixed for about $30,000,000.

Of course my small piece could be settled for about $500,000 and I would gladly sell my shares for 33%
of fair value or book value of the companies last reported 10-k. Below is the companies last reported
10-k which was a total fiction, a complete lie. But this is what the Court used to determine fair value
because like most of the Chinese Reverse Mergers the company maintained that these numbers were
true and correct, yet still they did not pay nor did they continue operations.

http://sec.gov/Archives/edgar/data/745651/000109690611000507/abat10k20101231.htm

Additionally, I am holding the following shares of Chinese RTO’s all of which have stopped their required
10-k reporting to the United States under SEC Regulations FD and are therefore untradeable and nearly
without value in the US.

Advanced Battery Technologies (ABAT) 77,535 shares

China Integrated Energy (CBEH) 10,700 shares
Sino Clean Energy (SCEI) 93,091 shares
China Sun Group (CSGH) 47,962 shares
China Clean Energy (CCGY) 70,000 shares

These would have value to the right person in China.

I will sell all of them for $600,000 and move on with my life and keep the lessons I learned about
accounting fraud in China to myself rather than continue my campaign of public awareness which is just
getting started.

Every day, I pray for help at our holy Kottel at the Wailing Wall in Jerusalem which perhaps you will visit
on your tour. Perhaps you or someone who reads this will be the answer to my prayers.

I will follow up in a week to give you time to take action. In the future, I will include this letter to
Members of the Knesset and the US Congress if need be as commanded by our Holy Torah in G-d’s name.

Thank you for listening and have a wonderful, profitable, safe and enjoyable trip to Israel.

感谢您聆听并有一次美妙的，有益的，安全和愉快的以色列之旅。

With the highest sincerity and respect (and hope.)

以最高的诚意和尊重，

Joel Caplan
beingjoel@yahoo.com
Israel Cell 050-437-0573
US Cell 1-413-341-6013