On June 20, 2013, the SEC announced that it charged China MediaExpress Holdings, Inc. and its CEO "with fraudulently misleading investors about its financial condition by touting cash balances that were millions of dollars higher than actual amounts."

On June 20, 2013, the SEC announced that it charged China MediaExpress Holdings, Inc. ("China MediaExpress") and its chairman and CEO Zheng Cheng ("Cheng") with fraudulently misleading investors about its financial condition by materially overstating its cash balances. According to the SEC's complaint filed in Washington D.C., China MediaExpress became a publicly-traded company in October 2009 through a reverse merger and began falsely reporting significant increases in its business operations, financial condition, and profits in press releases and SEC filings almost immediately thereafter. Zheng and China MediaExpress are charged with violations of the antifraud provisions of the federal securities laws. Additionally, China MediaExpress is charged with violations of the reporting, books and records, and internal control provisions, and Zheng is charged with violating the SEC's rules prohibiting lying to auditors and making false certifications required under the Sarbanes-Oxley Act. The SEC seeks financial penalties, permanent injunctions, disgorgement, and an officer and director bar against Zheng.

On October 4, 2013, SEC issued a litigation release announcing that: "on October 3, 2013, the Honorable Ellen S. Huvelle, United States District Court Judge for the District of Columbia, entered a final judgment by default against Defendant China MediaExpress Holdings, Inc. (China Media). The final judgment permanently enjoins China Media from future violations of various provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act. The final judgment also holds China Media liable for total combined disgorgement and prejudgment interest of $41,894.082.05 and a civil monetary penalty in the amount of $7,250,000."

On October 9, 2013, Federal District Judge Ellen S. Huvelle entered default judgment against China MediaExpress Holdings, Inc. Previously, the Clerk of the Court entered a default against China MediaExpress Holdings on September 17, 2013.