Muddy Waters Is Back, Alleging Fushi Copperweld (FSIN) Represents High Risk Of Fraud

Tyler Durden's picture

As of earlier today, Sino Forest is official bankrupt, courtesy of ISDA's determinations committee which found just that, despite Sino's attempt to scapegoat Muddy Waters in an idiotic attempt at redirection. So is Muddy Waters sitting on its laurels, having been vindicated? No: the company just released the following analysis this time focusing on "The Fraud School', our old friend RINO as well as new entrant to the alleged fraudcap space: FSIN.

From Muddy Waters:

There was an important article in the Chinese media on April 3, 2012 talking about an investigation into a "fraud school" that prepared fraudulent companies to list in the US via RTO. The article states that this fraud school was responsible for bringing RINO (exposed by MW) to the US. It also states that the Chinese investment bank at the center of the fraud school previously worked with ALN, LIWA, RINO, and FSIN. We conclude that FSIN presents a high risk of fraud.

MW is launching a new interactive report format, with a narrated slide show (15 minutes) available on YouTube (link below). MW will soon release on its website a white paper with the supporting material for the interactive report.


Muddy Waters - Narrated Frauducation on Fraud School, RINO, FSIN from Muddy Waters on Vimeo.

And here is the full presentation:


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Joebloinvestor's picture

Kudos to MW.

Seems to be able to do what high paid "ANALYSTS" can not.

Freddie's picture

America/Hope & Change = High Risk Fraud

stickyfingers's picture

Like shooting squid in a barrel.

ZeroSpread's picture

Man, I would have expected WAY more comments to this article at this point in time! Too many gold-only bugs on this page nowadays..

..let's see how many junks agree ;-p

carbonmutant's picture

Trucking in workers for an Investor Tour...??

Sounds like Enron's trading room

jdelano's picture

Carson Block is a moronic frat brother with a head full of bong resin.  He hasn't a clue how to read a balance sheet, his first call was a spurrious report issued as a vendetta and ever since he has just been getting tips from hedge funds and smarter minds.  Please don't give this ass clown more credit than is actually due.... 

Pladizow's picture

Perhaps you should open a firm?

Toolshed's picture

Unless you can quantify your derogatory remarks about Carson Block we will just chalk it up to your professional jealosy. We are waiting.


jdelano's picture

quantify or qualify...?  In order to be jealous of someone you have to want to be them.  I'd rather be janet reno's douche nozzle than Carson Block.  If you want to idolize the guy, go ahead, plenty of people think Kid Rock is worthy of their adulation too...  But before you set up your Carson Block wank shrine in the closet at least familiarize yourself with his career trajectory:

1.)  Tier three law school flunkie flames out of his testament to mediocrity job in the states and... 

2.) Moves to China flush with criminal father's cash to cultivate (ridiculous) self-storage empire which...

3.) Fails miserably leading Blockhead to pursue a new boneheaded venture...augmenting his father's business to do "analysis" of chinese companies, so he...

4.) Approaches Orient Paper and offers to charge them a "modest" fee to do a glowing report on their prospects.  They say, "You fukee off now" and...

5.) Block gets his panties in a bind and publishes an utterly spurrious report accussing Orient Paper of fraud, later proven to be completely innacurrate but only after the stock had been irrevocably destroyed.........thus garnering Block (who made no money from the stunt as at that point he didn't even know how to short) a reputation as a chinese "fraud buster" and leading to the birth of Muddy waters which... 

6.)  got him interviews on bloomberg where he caught the interest of a number of intelligent short sellers who wanted to go after chinese companies that they legimately knew to be fradulent without arousing the ire of other hedge and mutual fund managers that had long positions in the same stocks.  In other words they saw in Carson a pasty who could be the public face of their fraud accusations and let him blow the whistle while they quietly and discretely got to sandbag their friends and neighbors on wall street...who were also aware that the companies they were invested in were horseshit....


I'll let you figure out where I fit in this picture.  Block, as I said, is a moron who stepped in shit, and hey, I don't hold that against the guy, but it's tiresome to listen to you all naively bleating about how he's a champion of the people and all....   

Venerability's picture

The main condemnation of Chip Off the Block is, once again, that his Daddy in Los Angeles is a PR man whose clientele consists of well-heeled Short Sellers.

And there has also been much speculation that Little Carson is an associate of Manuel Asensio.  

At this point, though, nobody much cares about Bear Raids in FSIN, since that ridiculous Short Position needs some opportunities to come out, if it possibly can.

It's been sitting there for ages, and is clearly a burden on those carrying it.

I also believe that a key reason FSIN did not accept the last offer - in the mid-9s - made to it by Abax was the Thomas and Betts acquisition at a very, very good price.

There may well be some international entity interested in making a higher offer, in which case Little Carson and his ninety zillion Shorts are not looking that attractive. 

Freddie's picture

Cool - Venerability is posting here now. Her stuff on Seeking Alpha is good.  The rest of SA is not so good.

SheepDog-One's picture

'Fraud school', to train aspiring pirates how to go in and pillage the retail stock buyer....only problem is retail never did show up.

bahaar's picture

Is that why FSIN stock is up and Wall Street has a buy recommendation?

bugs_'s picture

too many fraud schools.  each has its own stock symbol.

ebworthen's picture

No doubt the People's Liberation Army (PLA) has their hand in this training.

People were up in arms about cheap Nike sneakers from Vietnam, but somehow Billions of Chinese being indentured servants to their country's military (government) is acceptable?

American Universities tripping over themselves to provide a century of information and research to said military (government).

American businesses outsourcing everything possible to said military (government).

Said military (government) spending Billions on building their Air Force and Navy.

And this will end well?

Anyone remember boycotting South Africa over indentured servitude and apartheid?

What, we don't care about the citizens of China because they are all Asians?

insanelysane's picture

We don't care about the citizens of China because they make us cheap I-crap not because they are Asian.

insanelysane's picture

Is that 'Fraud School' or employee orientation at GS and JPM?

topshelfstuff's picture

It may be up a lot today as part of a Short The Box play

dannyboy's picture

Wasn't Paulson in on this shit?

SillySalesmanQuestion's picture corporations and stock markets...? So much fraud, that now they are  "teaching" it...

Fraud, as in the concept of vaporization, re-hypothecation, monetization, and muppetization...I just can't comprehend it all being a...fraud...


AnarchoCapitalist's picture

This auditors should be the first line of defense and they are blowing it. I am glad that he is doing this research but his production quality needs to be improved.

Venerability's picture

Shame on you for printing that, Durden.

Unlike Muddy Waters' s other targets, Fushi has much of its manufacturing base in the United States.

So Little Carson and his PR-manager-to-Shorts Daddy in Los Angeles can visit all their sites for themselves.




B-rock's picture

Hey, this totally made me $15 today! Back off! :)

TheMerryPrankster's picture

Copperweld? Weren't they gutted by LTV back in the 70's? one of the first leveraged buyouts before they were called leverage buyouts.

they bought up the company gutted the assetts laid everybody off and shipped the equipment overseas collapsing steel workers wages in a preliminary foray into our current economic malaise.  A bifurcated society bent on burning the platform on which it stands in a strange form of capitalistic immolation. He who has the most money burns the brightest, but still he dies engulfed in flames.

Copperweld a blueprint for destiny, the path was hewn as we slept and now we awaken and find the world gone and only shadows and dead men walking; zombies and pickpockets and tv reality. Which was the real world again?

China and the U.S. who is the teacher and who is the student? Who is the master? The art of martial arts is to turn the enemies force against him, to use his own efforts as leverage against him.