VANCOUVER - The British Columbia Securities Commission has accused a hedge fund manager and financial blogger of fraud involving allegedly false claims about Silvercorp Metals Inc. (TSX:T.SVM
, Stock Forum
Silvercorp's shares fell 20 per cent after Jon Richard Carnes published a negative report on the company on the financial blog AlfredLittle.com in 2011.
Carnes closed his short position in Silvercorp's shares by the next day, earning a gross profit of almost US$2.8 million, the regulator says.
The allegations have not been proven.
Silvercorp repeatedly denied any wrongdoing and alleged that it was the victim of a campaign designed to drive down the value of its shares.
A forensic auditor's report later backed the TSX-traded Chinese miner's financial statements.
Silvercorp has mines at the Ying mining district in China's Henan province and another in Hunan as well as a project under development in Guangdong.
AlfredLittle.com runs many articles alleging fraud against Chinese companies listed on North American exchanges, and continues to post negative stories about Silvercorp
, the most recent being on October 17.