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Alfred Little Strikes At Latest "Brazen Fraud" - Harbin Electric (NASDAQ:HRBN)

Tyler Durden's picture




 

Harbin Electric is no stranger to controversy, and its stockholders over the past two years can be forgiven if they believe that jumping on a Six Flags rollercoaster may have been a little more fun, and potentially far more profitable. Well, to keep it interesting, here comes famed Chinese fraudcap hunter Alfred Little with its latest piece, this time alleging that not only long-time target DEER, but also HRBN, "committed multi-million dollar land fraud." Specifically, "In the case of HRBN, management claims they paid $23 million cash as of June 30th, 2011 as a deposit on $38 million of land use rights priced at 500,000 RMB per Mu, double the government’s offering price." Little continues: "Our report today provides concrete evidence consisting of multiple recorded phone calls, on site visits and emails with government officials proving beyond any doubt that HRBN and DEER are both guilty of conducting very similar fraudulent land use rights purchase schemes to steal money from their shareholders. HRBN’s auditor, Frazer Frost, failed to respond to our attempt to share our findings last week." And now is the time for the porn addicts to finally stand up and do something proactive instead of letting to blogosphere do their work for them: "This morning we handed over all our evidence to officials at NASDAQ and the SEC prior to publishing this report. We are hopeful regulators will halt HRBN and DEER until their financials are restated to reflect reality, in the same manner as PUDA and CTE were immediately halted after we published our findings (here) and (here)." The final nail: "In this report we prove that HRBN and DEER’s land frauds are just as brazen as the fraud conducted by PUDA and CTE and thus deserve the same fate." Longs have been warned.

Full report (pdf)

 

 

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Tue, 09/06/2011 - 12:38 | 1638611 buzzsaw99
buzzsaw99's picture

emerging markets bitchez.

Tue, 09/06/2011 - 13:27 | 1638758 SilverRhino
SilverRhino's picture

Emerging scam artists.  I love how no Chinese national can ever be extradited from China for anything including defrauding Westerners.  

Tue, 09/06/2011 - 15:31 | 1639237 buzzsaw99
buzzsaw99's picture

dick fuld is still dancing why not the chinese?

angelo mozilo is still dancing why not the chinese?

hank paulson is still dancing why not the chinese?

john paulson is still dancing why not the chinese?

jamie dimon is still dancing why not the chinese?

roland arnall is still er, scratch that, he had the decency to die.

Tue, 09/06/2011 - 12:39 | 1638613 Fake Jim Quinn
Fake Jim Quinn's picture


Tue, 09/06/2011 - 12:41 | 1638622 reader2010
reader2010's picture

Outsiders always believe there are tons of profit-making business opps in China; however, the facts have always pointed to the other direction. 

Tue, 09/06/2011 - 12:44 | 1638635 Theta_Burn
Theta_Burn's picture

This 1 is optionable....Hmm...

Tue, 09/06/2011 - 12:48 | 1638647 Azannoth
Azannoth's picture

Does any1 honestly think the Chinese would bother to list their companies in the West so they could share their profits with the 'dirty western imperialists' ?

Hell no, the chinese are the 2nd most greedy nation in the world just after the jews, this does not mean all their companies are scams, just those that we can buy into

Tue, 09/06/2011 - 13:01 | 1638692 dcb
dcb's picture

No I think the niggers are more greeedy, at least the jews work for a living. (the above was attempted to show really racism comes in many forms, change the language and it's clear what it is.

Tue, 09/06/2011 - 13:26 | 1638757 HCSKnight
HCSKnight's picture

You might in the future want to consider not saying "the above" but rather simply start at the "to show".... Children and the rabid are easily confused, and what shows on the screen during edit isnt always the format that shows on the comment log.

Btw, your attempt failed.  It's the sophists "language" coupled with poor intellectual formation (i.e. schools) that give rise to the lies such as PC and spirituality.  It is why the Catholic Church long ago made the "dead" language of Latin its official language, in an attempt to protect the church from Screwtape.  

The current state of "the West" and the evils besetting Rome are of the same root. 

Tue, 09/06/2011 - 13:55 | 1638816 Azannoth
Azannoth's picture

The Church made Latin their language probably because they owned it (after everybody else abandoned it) so they didn't have to worry about any1 coming up with 'dirty words' otherwise known as the truth in their language, what is better than controlling history ? controlling the language you get the history/present and future in 1 package

As a developer it's easy to comprehend this, same as Microsoft has a few programming languages that they (effectively) own, this supports their monopoly they even tried to 'infect' an open source language (Java) by creating their own but incompatible version (later they lost in court and had to give up, thankfully)

Controlling the language and information flow is the ultimate victory for those trying to control the world

Tue, 09/06/2011 - 12:48 | 1638648 tmosley
tmosley's picture

Wasn't Harbin a Schiff reccomendation?  

Either way, I am glad that I went the "all metals" route rather than trying to play with emerging markets.

Tue, 09/06/2011 - 12:55 | 1638675 tmosley
tmosley's picture

Looks like it wasn't.  Google finds nothing on it.  I just remember him reccomending Chinese utilities, and the name seemed familiar.  All these frauds just sort of run together these days.

Tue, 09/06/2011 - 13:22 | 1638654 GeneMarchbanks
GeneMarchbanks's picture

The Blogosphere will do all the work soon enough. You're on your own peoples! All have been bought.

Tue, 09/06/2011 - 12:50 | 1638663 buzzsaw99
buzzsaw99's picture

Fidelity and Vanguard both own this pig.

Tue, 09/06/2011 - 12:51 | 1638665 Hephasteus
Hephasteus's picture

Did they use fine HP printer products to print their fraudulant deeds of title. Did they make Charles Ponzi proud.

Tue, 09/06/2011 - 13:07 | 1638705 Watts_D_Matter
Watts_D_Matter's picture

Just shorted 2 shares....wish me luck...

 

Tue, 09/06/2011 - 13:21 | 1638745 stacking12321
stacking12321's picture

how did you short?

 

etrade at least shows shares may not be borrowed for shorting.

 

Tue, 09/06/2011 - 13:24 | 1638755 Watts_D_Matter
Watts_D_Matter's picture

Thats all I got from TD Ameritrade

Tue, 09/06/2011 - 17:24 | 1639607 prophet
prophet's picture

Sell a bear call spread for a net credit.  No halt risk.  Decent numbers on the December series. 

Tue, 09/06/2011 - 13:19 | 1638738 entendance
entendance's picture

Anse Intendance Inestors' campaign is gaining action...even Market Watch is on alert!

Occupy Wall Street will lay siege to U.S. greed

 

http://www.entendance.com/forums/viewtopic.php?f=6&t=801&p=19164#p19164

 

Tue, 09/06/2011 - 13:20 | 1638741 Jason T
Jason T's picture

this made it interesting from back in June:


One of Mr. Siris's biggest investments is in Harbin Electric Inc. which, on May 27, issued a news release to "categorically deny" rumors its chief executive and top finance official had "gone missing." Instead, it said they were "at work and are fully performing their respective corporate duties." A board committee at the electric-motor manufacturer is evaluating an offer from the CEO to take the company private; the shares recently were down as much as 40% from a 52-week high.

Mr. Siris shakes his head at those rumors, saying he was in Harbin, China, meeting with the CEO the day he was supposedly absent. "I wondered if he disappeared before breakfast or after breakfast," Mr. Siris quipped."

 

http://online.wsj.com/article/SB10001424052702304665904576383943666158846.html

 

Assuming Mr. Siris is telling truth, it makes you wonder how low the shorts will go to bring the stock down so they can cover.

This is far more interesting to me than say the O.J. trial, which I didn't really care much about but the nation was fixacted on back in 95'/96'.

 

Tue, 09/06/2011 - 13:35 | 1638773 LetThemEatRand
LetThemEatRand's picture

Any of you "government get out of my way, less regulation is the answer" types hanging around on this story?  I didn't think so.  

Tue, 09/06/2011 - 13:55 | 1638832 stacking12321
stacking12321's picture

that's a simplistic view.

 

the government interefering in free markets and setting things like monetary policy is one thing, they should in general interfere less.

 

but fraud is a crime, no one is suggesting government shouldn't go after criminals.

 

to equate the 2 things and suggest that being pro-free market equates to letting criminals run rampant is intellectually dishonest.

 

don't be dishonest.

 

Tue, 09/06/2011 - 14:20 | 1638936 LetThemEatRand
LetThemEatRand's picture

I completely disagree.  The simplistic view is the idea that less oversight is the answer to everything.  I'll bet the post-fraud lawsuits and criminal actions don't make the investors whole.  A properly regulated market and an enforcement arm that does more than close their eyes and wait for their inevitable job at Goldman, would help prevent these types of things from occurring in the first place.  The broad brush "government get out of my way" crowd has never distinguished monetary policy from broader regulation.   The mantra is less government, which would effectively hand the keys to the barons.  Ironically, the monetary policy that you don't like is largely dictated by the private federal reserve and European central banks.

Tue, 09/06/2011 - 16:46 | 1639483 ffart
ffart's picture

The simplisticer viewpoint is that government monopolies on setting statute aren't by their very nature corrupt

Tue, 09/06/2011 - 18:06 | 1639737 stacking12321
stacking12321's picture

speaking of broad brush, to say that everyone who holds a less-is-more government view, automatically believes that all regulation such as fraud prevention is on the same level as government interference in free markets, well it's just not the case.

i believe that the government should stop interfering with free markets as much as possible with regard to tariffs, subsidies, monetary policy, etc.

i also believe that the government should agressively go after criminals who disrupt those markets, including those who commit fraud.

thus, i have refuted, by way of myself as a counter-example, your hypothesis.

 

QED

 

Tue, 09/06/2011 - 13:35 | 1638774 SpeakerFTD
SpeakerFTD's picture

Completely OT, but I have noticed the BDI has screamed off its lows.    Any thoughts on why?

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Tue, 09/06/2011 - 14:16 | 1638844 Use of Weapons
Use of Weapons's picture

From a brief look at it by a naive and totally clueless party [sometimes helps]:

Market was saturated [over-supply of vessels commissioned in 07/08 @ the height of the market, 2 years to delivery / build] and major users were either in decline due to recession [or having trade spats, see China / Brazil coal/iron ore] or under water [Australian floods early this year].

I've no familiarity at all with the industry, but I assume that BRIC pickup & given that its partly a reflection on grain shipping, (and we've seen a large increase in price / supply, people are valuing stockpiling grain more - not to mention, major droughts in the US, Japan's crops being hit etc) means that pacific freight is more in demand. Or it could simply be that it tanked entirely, and players were held to contracts on pre-crash prices (despite some attempting to ditch) and you're seeing a normalisation of the costs in regards to supply/demand.

 

Sorry if that's not helpful, but I at least learnt something about freight.

 

[edit]

Hmm - MSM placing the rise on Iron/Coal demand increasing as well as grains, seems to agree with my fast read - has a dealer comment that its going to "come off" though. (I guess this means tank). http://www.businesstimes.com.sg/sub/shippingtimes/story/0,4574,454917,00...?

Quick media snap-shot shows that Australia was talking down Chinese demand through August, but a large iron ore order was placed recently. This is presumably the snap up. There's also activity on Aus. miners in other areas - copper, gold mines all showing activity. This is simply MSM trawling though.

Tue, 09/06/2011 - 14:37 | 1639007 TomJoad
TomJoad's picture

The only thing I can tell you as an industry participant is that there are no companies hiring in shipping; not bulk, oil and gas, containers, LNG, newbuids, nowhere, nobody. It is far and away the worst I have seen it in 20 years in the ship business.

 

Almost forgot, lots of jobs on yachts though, and lots ot mega yacht building going on. Just can't bring myself to work in the "Can I mix you another martini, Sir?" side of the industry.

 

Jump! You Fuckers!

Tue, 09/06/2011 - 15:34 | 1639247 SpeakerFTD
SpeakerFTD's picture

Thanks for the responses.  Great input.

Tue, 09/06/2011 - 16:08 | 1639348 stacking12321
stacking12321's picture

citron research's report citing similarities between HRBN and madoff's ponzi:

 

http://www.citronresearch.com/index.php/category/citron_reports/

Do NOT follow this link or you will be banned from the site!