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Cathy Fang, and established CPA with extensive corporate experience, and registered with the Public
Company Accounting Oversight Board, served as the independent auditor for Advanced Materials
Group, Inc. (͞AMG͟), a manufacturing company headquartered in Garland, Texas. From at least the
fiscal quarter ended May 31, 2008 through the fiscal quarter ended February 28, 2009, AMG͛s former
chief financial officer orchestrated a fraudulent scheme to inflate AMG͛s earnings and accounts
receivable.

Receiving fraudulent and incorrect information from AMG during the audit process, Cathy certified the
audit in accordance with SEC regulations and filed necessary paperwork on behalf of AMG to the SEC.

͞On June 9, 2010, the Securities and Exchange Commission sued William G. Mortensen, the former CFO
of Texas-based Advanced Materials Group, Inc. ("AMG"), in U.S. District Court in Dallas for fraudulently
inflating AMG's publicly reported financial results over multiple quarters in 2008 and 2009. The
Commission charged that Mortensen committed securities fraud, lied to accountants, falsified records
and circumvented internal controls, and aided and abetted reporting, record-keeping and internal
control violations. The Commission also alleged that Mortensen misappropriated hundreds of thousands
of dollars from AMG to pay personal expenses. ͞

From - http://www.sec.gov/litigation/litreleases/2010/lr21550.htm

Fang immediately worked with the SEC regarding the AMG investigation and voluntarily removed her
registration with the SEC that provided her privilege of appearing or practicing before the Commission
as an accountant as part of an agreement with the SEC. Fang does have the right to register with the
SEC in the future.

͞It is terrible that in this world there are people that are dedicated to commit crimes regardless of the
safe guards and controls in place, which is what appears to have happened at AMG. This incident with
AMG was unfortunate but those that would cheat the public will not deter me to do what is right in
business or politics,͟ states Fang.