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.

9 comments:

Kyle S said...

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

TheDrugsDon'tWork said...

Those sino guys are dead unlucky.

Pereg25 said...

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!

Christie said...

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

Hester said...

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???

Anonymous said...

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.

Papafox said...

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.

Anonymous said...

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

Insider said...

A big four audit firm audited Enron too...

General disclaimer

The content contained in this blog represents the opinions of Mr. Hempton. Mr. Hempton may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Hempton's recommendations. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author.  In particular this blog is not directed for investment purposes at US Persons.