Sino-Forest hits back after panel finds no evidence of mass fraud

SINO-FOREST, the Chinese firm accused of misleading investors, claims an independent panel found no evidence it was perpetrating a massive investor fraud, but the forestry company’s chief accuser has said the probe lacked credibility.

Sino said yesterday the panel, commissioned in June, found no basis for a short-seller’s allegations that the company was operating a Ponzi scheme.

But it conceded the committee’s interim report left many of the questions raised by Carson Block and his Muddy Waters firm unanswered.

“We believe this release has no credibility,” Block’s firm said.

Sino-Forest, one of the most prominent Chinese firms listed in North America, saw its share price hammered following Block’s allegations.