Sino-Forest Fraud Probe Ends without Answering Key Questions

The independent committee looking into the allegations of fraud at Chinese timber company Sino-Forest Corp. came out with its final report but failed to provide conclusive answers to some key questions relating to the company’s business practices. The troubled Canadian-listed Chinese forestry company has been in a downward spiral since last June, when short-seller Carson Block and Muddy Waters LLC alleged it had overstated its Chinese forestry assets. In a highly technical report, the committee acknowledged that it was unsuccessful in its attempt to unravel all the questions surrounding the company’s practices in China and failed to ascertain whether Sino-Forest…