Friday, November 18, 2011

The Sino Forest Independent Committee Report - part 2

Sino Forest's Independent Committee of Directors has - as explained before - concluded there was no substantial fraud at Sino Forest.

Here without adornment is another paragraph (paragraph 54) from the process memorandum sent by the Independent Committee's legal and accounting advisers to their law firm:

The extent of historical electronic data (e.g. emails) at the Guangzhou office where two of the senior members of Management are located (CHEN Hua and Albert ZHAO) was almost non-existent. There was no backup of the email server (according to Management, the email and file servers were not being backed up at this location). The earliest email retrieved from Ms. Chen and Mr. Zhao’s computers and servers was dated June 10, 2011. It is to be noted that the IC Advisors attended at the aforementioned office on June 13, 2011 for data preservation but access to the company servers and IT staff was denied by Ms. Chen. Subsequently, on June 15, 2011, the IC Advisors were provided access to commence data preservation.

at

9 comments:

  1. KyletestkyleNovember 18, 2011 at 7:00 AM

    It's almost like they think that's suspicious or something.

    ReplyDelete
  2. TheDrugsDon'tWorkNovember 18, 2011 at 8:47 AM

    Those sino guys are dead unlucky.

    ReplyDelete
  3. Pereg25November 18, 2011 at 9:48 AM

    Kyle S .... I hope you're being sarcastic.
    How do they get away with it?? Come on let's have an independent audit but you can only audit what we want you to audit? It's like agreeing to sit for an exam where you can supply all the questions!

    ReplyDelete
  4. ChristieNovember 18, 2011 at 12:22 PM

    I think you are a Che wannabe, Good luck. You are sad.

    ReplyDelete
  5. HesterNovember 18, 2011 at 1:40 PM

    Another dirty short seller barking up the wrong tree... Obviously they just wanted to delete all their embarrasing sex toy & bondage purchase confirmation emails from Amazon.com before the IC saw them. Or is that a crime too now, Mr. Hempton???

    ReplyDelete
  6. AnonymousNovember 18, 2011 at 2:26 PM

    Hi John,

    any idea why the investigation wasn't done by a big 4 audit firm?

    I would've expect a forensic report by a big 4 firm to carry more weight.

    As of right now, the report by the independent committee has become the laughing stock of the western world.

    ReplyDelete
  7. PapafoxNovember 19, 2011 at 3:20 AM

    John - are you moonlighting as a member of the IC Advisor group? Are you sure you didn't write the
    AI and Supplier Site Visit Summary    ?

    Read it in conjunction with Para 110 of the Process Memorandum. My irony meter went off its' scale.

    It is quite clear that (a) the AI are a scam; and (b) management is financially involved with various AI's (possibly through Huaihua City Yuda Wood - see Paras 23,33 & 50).

    MW has made it's case.

    ReplyDelete
  8. AnonymousNovember 19, 2011 at 4:25 AM

    Nothing to see here ... move along.
    - Frank Quatronne

    ReplyDelete
  9. InsiderNovember 19, 2011 at 9:23 AM

    A big four audit firm audited Enron too...

    ReplyDelete