The Chinese forestry company at the centre of a Canadian regulatory investigation rebutted allegations of fraud on Tuesday, even as the company’s own legal and accounting advisers raised concerns about their access to information.
Sino-Forest released an interim report that it said disproved the “substance of the allegations” made by Muddy Waters, a US research group that bets against companies by short selling their shares.
“We can categorically say Sino-Forest is not the ‘near total fraud’ and ‘Ponzi scheme’ as alleged by Muddy Waters,” said Judson Martin, Sino-Forest chief executive.
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