(Source) — The Ontario Securities Commission has ordered senior officers and directors of Sino-Forest Corp to resign and has cease-traded the company’s shares.
The commission said in a release Friday that it has reason to believe the company and certain of its officers and directors have “misrepresented some of its revenue and/or exaggerated some of its timber holdings” and that some of the officers and directors – including chief executive officer Allen Chan – appear to be engaging in acts “they know or reasonably ought to know perpetuate a fraud.”So much for all the great hedge fund managers and asset managers and equity analysts and their multi-million yearly salary and their great research work.
And I'm not even mentioning those who doubled down on the crash, once Muddy Water revealed the fraud.
The fact that Chinese shares are still collapsing and people are still so bullish on that country is very telling. The state of denial in the equities market is amazing.
I've said it many times before, and I will keep on saying it:
- The massive bubble in China has spurred massive frauds, and many companies will get to $0.
- China will collapse anyway, so even real companies will collapse up to 80-90% from their peak, reached in 2007.
- This will end in tears.