British Chamber of Commerce (China) Treasurer and LehmanBrown Managing Director, Russell Brown, Under Investigation for Ethical Misconduct


Beijing, China - April 2, 2010

Russell Brown, Treasurer of the British Chamber of Commerce in China and Managing Director of LehmanBrown, one of China’s largest CPA firms, is currently under investigation for ethical misconduct by his regulatory body, the Chartered Institute of Management Accountants (CIMA).

On March 22nd, Mr. Danny Thomas, the Conduct Manager of CIMA issued a letter stating that Mr. Brown’s ethical misconduct related to his management of LehmanBrown created a prima facie case that Mr. Brown had committed numerous ethical violations as well as violations of Hong Kong Company Ordinances.

The CIMA Investigation Committee cited specific instances of ethical misconduct including:

Appropriating funds of the company for the purpose of improperly increasing his salary, paying himself expenses without board authority, and paying his wife (as an employee of the company) above a reasonable market rate.

Appointing his wife, Ms. Zhou Han, to the position of Human Resources Director and determining her salary and bonus, without the consultation of fellow company directors

Breaching his fiduciary duty as a company director by failing to observe the internal procedures of the company.

Failing to act in the best interests of the company in the proper management of conflicts of interest.

Failing to provide fellow company directors information necessary for them to approve the 2007 audited accounts for submission to the Hong Kong regulatory authorities.

Withholding dividends to shareholders of the company.

Russell Brown’s case has been referred to the CIMA Disciplinary Committee.

For more information, the CIMA letter may be found at:

http://www.lehmanlaw.com/fileadmin/CIMA_Notice_Russell_Brown.pdf

The British Chamber of Commerce in China (BritCham) is an independent, membership-based organization providing connectivity for British Business in China. Established in 1993, BritCham is a not-for-profit organization representing the interests of our members, and providing a network platform for British business in China.

More about the British Chamber of Commerce in China can be found at:

http://www.pek.britcham.org/web/aboutus/exco.php?switchTab=44

Lehman Brown is one of China’s largest CPA firms with offices located in Beijing, Shanghai, Hong Kong, Macau, Shenzhen, Guangzhou and Tianjin.

More about LehmanBrown can be found at: www.lehmanbrown.com

The Chartered Institute of Management Accountants (CIMA) is the world’s largest and leading professional body of management accountants, with 172,000 members and students in 165 countries. CIMA is committed to upholding the highest ethical and professional standards, and to maintaining public confidence in management accounting.

More about CIMA can be found at: www.cimaglobal.com

The “LehmanBrown” trademark saga has taken a number of turns this year, from the April 25th, 2013 judgment of the Higher People’s Court of Beijing against Russell Brown’s consultancy to Russell’s Consultancy losing its account on LinkedIn. In addition to Edward Lehman being cleared of all charges by the Hong Kong Court of Appeals, the Higher People’s Court of Beijing ruled against Russell Brown as Legal Representative of his Consultancy and denied their “claimed” ownership of the trademark “LehmanBrown”. Further news shows that his opposition to related trademarks has been denied and the Consultancy’s links misrepresenting their firm as “LehmanBrown” (and CPA certified) have been removed from the ACCA website of approved employers. A LinkedIn account for this organization, previously claiming to be titled “LehmanBrown” no longer exists and Russell Peter Brown himself has now been removed as Treasurer of the Rotary Club of Beijing.
To read more about the details of this large-scale infringement and IP adventure in the People’s Republic of China please visit the links below:

http://www.prnewswire.com/news-releases/lehmanbrown-trademark-dispute-concluded-edward-lehman-victorious-against-russell-brown-chair-of-british-chamber-of-commerce-in-china-in-final-ruling-of-chinese-peoples-courts-222293931.html
http://www.prnewswire.com/news-releases/russell-brown-chair-of-british-chamber-of-commerce-in-china-fails-in-attempt-to-lodge-opposition-against-the-registration-of-trademark-lehman-bush-222942811.html
http://www.prnewswire.com/news-releases/chairman-of-the-british-chamber-of-commerce-in-china-russell-brown-removed-from-position-as-treasurer-of-the-rotary-club-of-beijing-and-his-consultancy-no-longer-listed-on-linkedin-or-as-approved-employer-of-the-association-of–227604801.html

LehmanBrown is a local Chinese CPA firm. Russell Brown runs a consultancy that is NOT a local Chinese CPA firm. Russell Brown’s consultancy has infringed on the registered trademark/service mark LehmanBrown, he knows this because of the judgment rendered by the Beijing High Court against Russell Brown on April 25, 2013. Mr Brown’s consultancy has been duly raided on many occasions by the Shenzhen Administration of Industry of Commerce and the Guangzhou Administration of Industry and Commerce (these are administrative organs of the government) for trademark infringement and has been dully filed by these organs. LehmanBrown CPA is indeed a registered Chinese CPA firm with license no 110000002120671 with the Ministry of Finance and the Chinese name is 北京雷曼会计师事务所有限责任公. Russell Brown is not a CPA in China or the UK. Russell Brown is not a director or partner of any CPA firm in the world, his consultancy is merely a consulting WFOE, they are not licensed to perform China audits. Mrs. Zhou Han Brown is not a CPA, she is not licensed to perform Chinese audits and is not a director of any CPA firm in the world. The Brown’s have infringed on the trademark of an already existing Chinese licensed CPA firm.
To read more about the administrative raids on Russell Brown’s consultancy in Guangzhou and Shenzhen please refer to the links below.

http://www.lehmanlaw.com/press-room/china-law-news/office-news/china-law-news/article/4105/russell-pete.html
http://www.lehmanbrowncpa.com/en/press/news_view.asp?id=8701
http://blawg.lehmanlaw.com/wordpress/?p=2068