BCSC accuses blogger of Silvercorp (T.SVM) $2.8m short-selling fraud

Canadian Press, The Canadian Press
0 Comments| December 19, 2013


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.

Tags: SILVER

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